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A broker who represents only the seller in a transaction, has a fiduciary responsibility to the seller. Dealing with a third party, the broker
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Terms in this set (149)
Seller Able accepted an Offer on his home in the acceptance was communicated back to the buyer. Prior to opening escrow however seller able received an all cash offer to purchase the property. He decided to cancel the original contract in notified broker Baker of his decision. Which of the following is most correct?
What document gives the listing agent the authority to accept a deposit?Exclusive right to sellInquired privilege to use or enjoy real property that is short of an estate is called:An easementMeasurement of a property's frontage uses:Front footThe reason signatures are acknowledged on a grant deed is to:Record the grant deedA broker cannot:Remain silent when a material fact is only known to himA person enters into a contract and agrees not to terminate the contract for a certain period of time. This is called a(n):OptionConcerning a sub agency relationship, which of the following is most nearly correct:A broker is not required to accept an offer of sub agencyAn installment note has an or more clause. Such a clause will:Allow an accelerated pay offThe primary purpose of the California Department of Real Estate Recovery Fund is:For members of the General Public who hold uncollectible judgments against a license to collect limited damagesJones gave Smith a power of attorney to sell his home. All of the following statements are correct, except:Smith may legally deed the property to himself, only if the selling price equals or exceeds the fair market value.When CC&Rs are contained in a deed:a condition subsequent runs with the land.What type of loan provides for deferment of certain principal payments during the early years of the loan?GPAM loanA good indicator of a commercial properties value isThe purchasing power of the communityAn FHA loan will and a VA loan will notProvide for the purchase of a duplex purchased for rentalA non-licensee purchase a home himself, knowing he can immediately sell it for more money. Which of the following is most correct?This is perfectly legalEscrow Instructions:Always prevail over the purchase contractWhich of the following is not considered a poisonous gasCarbon dioxideThe seller is not responsible for representations and actions made by the:Buyers agentThe estimated period of time over which a property will yield a return on the investment above the economic rent attributable to go on itself is calledThe economic lifeAbel purchased an income property for $200,000. He obtained a loan for $190,000. The land was valued at $40,000 and the salvage value of the building was $10,000. As a basis for depreciation the amount able could use for depreciation is$160,000If a real estate broker is paid his commission in cash in part of a business opportunity, this isLegalAble added some cabinets to the home that he owns. The cabinets are permanently attached to the home. The cabinets have become real property because Abel has:Incorporated the cabinets into the landA broker is sued by an individual for $25,000. The judgment is unrecoverable. How much can the individual obtain from the Department of Real Estate Education and Research Account?$25,000A person who has been given the right act on behalf of another is known as a/an:Attorney in factAn appraiser relies on the principle of substitution, he then assumes that one property may be substituted for another in terms of:-income -use -structural designAlone that is completely repayed by theories a regular equal installment payment of principal and interest is called:Fully amortized loanThe maximum recovery from the Department of Real Estate Education and Research Account is$250,000 per individual licensee ($50,000 maximum per occurrence)The power of sale is given by theTrustor to trusteeThe following is true with respect to riparian rightsThe riparian land must be adjacent to the stream and in the watershed of the streamWhen accepting an offer of his home, seller Thomas changed one of the terms of the buyers offer. This is best described as:A counter offerA real estate broker is trying to secure listings for his office by advising owners that members of minority groups are moving into the neighborhood and it would be advantageous to sell now. He is in violation of the-California real estate law in may be subject to disciplinary action by the real estate commissioner and may have his license suspended or revoked -Federal Open Housing LawAble purchases black acre from Baker, using a land sales contract. Baker records the contract. Six months later able fails to make payments as provided in agreement. Finally, able abandoned the property, leaving the state. He cannot be located. In order to remove the cloud on the title, Baker most likely would:Institute a quiet title actionThe owner of a single-family residence list the property for sale with a real estate broker. The owner informed the broker of a roof leak, but the broker did not inform the buyer. The buyer could recover damagesFrom both the seller and the broker. The seller could then recover damages from the broker.A broker acting in fiduciary capacity representing A client in dealings with third persons in selling, buying from or exchanging real property is said to be bound by the laws of:AgencyThe rent property is expected to reasonably produce, established by comparable rent of similar properties is called:Economic rentSmith owns a partial a real property and sells it to Jones. Jones takes possession of the property but does not record the deed. Smith discovers that Jones has not recorded the deed and resells the property to Brown. Brown records is dead. Under the circumstances the legal owner would beBrownA single-family home had a low assessed value and sold for much more than this amount. The buyer will pay:A supplemental assessment based upon the difference between the old assessed value and the new oneWhen ordinary repairs made to the broken equipment in a building, such repairs are usually classified asCorrective maintenanceSeller Skinner signed a 90-day exclusion right to sell listing with Broker Bill. Two weeks later, Skinner cancelled the listing with Bill and gave an open listing to Broker Carl and another open listing to Broker Paul. Three weeks later, Paul presented an offer to Skinner that the seller accepted. Which of the following is most correct?Paul is entitled to a full commission and Bill is entitled to a full commission as well.When an appraiser tells a person that the addition of a swimming pool will add to the net income of the property, this is calledContributionAble owned two adjoining lots designated Lot A and Lot B. He sold lot A to Baker and reserved an easement for his own ingress/egress across Lot A. Able did not use the easement for twenty years then decided to use it. Baker refused to allow him to use it. The easement isValid because an easement created by a deed cannot be lost by non-useAn appraisal is limited toAnalysis of facts on a given dayThe effective interest rate returned from a first trust deed by an investor is calledMortgage yieldUnadjusted cost basis of a property would include the originalSale price or original costThe broker in a large real estate office dies. All listingsare automatically cancelled and the new broker would need to re-list the properties.Which of the following is a similarity between owning a condominium and renting an apartmentThe occupier of each unit has an estate in real propertyUnder the Law of Agency, agents are required to do the following except:Prepare a five-year forecast for an income-producing propertyCapitalization. Establishes value bydividing the annual net income by the desired rate of returnMr. Stone needs $3,000 to go on a vacation. He holds a $7,000 second trust deed note on Greenstone Park. Mr. Ford offers to lend Mr. Stone the $3,000 if he can hold the $7,000 note as security. If Mr. Stone agreed to this, it would be an example of a:Negotiated pledge agreement.Straight-line depreciation is all of the following exceptAccelerated depreciation methodAn unlicensed employee of the broker may not-fill in a pre-typed application regarding a loan for the buyers -explain to the buyers that they need to look into another financial institution because of problems with their loan going through -design and make advertisementsSeller signed a 90 day exclusive right to sell listing with Broker Able. When the listing expired, Seller gave an open listing to Broker Baker and Broker Charlie. Three weeks later, Broker Baker presented an offer to the seller which he accepted. Which of the following is most correct?Broker Baker is the procuring cause of the sale and is entitled to a full commission.The date of purchase contract is generally the dateFinal acceptance is communicated back to the offerA mobile home on a permanent foundation is consideredReal propertyAll of the following are estates in real property exceptTrust deedAn agency relationship requires all of the following exceptconsiderationAfter the close of escrow the buyer discovers termite damage unknown to the seller or broker, who pays for this work?BuyerWhat is the relationship of indivisible service and complete loyalty?Trustee —-> BeneficiaryEconomic rent according to the income approach isProposed yield in the current marketThe easiest and fastest method to estimate a buildings cost is theComparative methodA lender would not be exempt from the requirement of providing the borrower with a Federal Right to Rescind Notice when the:Borrower is refinancing his personal residenceIf a beneficiary sells a trust a deed placing without recourse on the note, and the owner defaults, the new holder of the note can:Only foreclose on the trustorIn periods of type money there is-an increase in discount rates -an increase in the use of land contracts -an increase in the promotion of cash to value purchasesThe economic life of a building or improvement is the period of time from theCompletion of the building to its inability to produce incomePersonal property provides difficulties for real estate brokers because it-could become real property -could be hypothecated -can be alienatedAgent Charlie took a listing in promise seller able that he would advertise the property until it is sold. Agent Charlie had no intention of place in advertising. Agent Charlie is guilty ofActual fraudFaceTime divider would be required to notify the real estate commissioner if the subdivider changes-financing terms -changes lot size -changes portions of the purchase contractBroker Sam hold an oral listing on Carl's home. Carl excepts a bona fide offer from a buyer and demands of the deposit check be turned over to seller Carl. The agent mustGive the check to the seller, with the consent of the buyerState fair housing laws protect a person against what type of discrimination?Familial StatusAn incorporeal right isa non-possessory right of ownership.A buyer made an offer to purchase a property and placed $5000 as an earnest money deposit. The seller amended the offer with some terms of his own and did not change the amount of the earnest money deposit. The buyer than change the amount of the earnest money deposit to $1000. Which of the following is correct?The buyers change is considered a counter offerAn agency relationship is best established byWritten contractThe real estate commissioner is required to approve all of the following, exceptBroker-salesperson formWhich act deals with earthquake disclosure?Alquist-Priolo Special Studies Zone ActWhen a licensed real estate broker represents his client to third persons in the sale, lease, or exchange of real property, he is acting under which of the following laws?Law of AgencyA licensee will be paid a commission for the sale of a farm property. The commission may be in the form of-check -cash -promissory note that was assignedPrior to the sale of a subdivision, a subdivider must demonstrate to the Real Estate Commissioner that:The parcels of land will be used for the purpose statedA listing agent can legally complete the entire Real Property Transfer Disclosure StatementNeverIf a listing broker has the seller sign a hold harmless clause, this protects the broker againstMisinformation given by the seller concerning the propertyIf an agent reveals to a buyer that the seller will take much less money for the property, this is:Unethical and a violation of the agents fiduciary responsibility to the sellerA buyer defaults on a real property installment sales contract that was recorded by the seller. If a quitclaim deed is used to foreclose, who must sign?Buyer onlyIf a real estate licensee was trying to persuade people to list or to sell their property by telling them that members of another ethnic group were moving into their neighborhood, and it would be to their advantage to list or to sell, it would be an example of all of the following, exceptLegitimate conductAn unlicensed personCan receive a finders fee when it is given to induce or influence someone to do somethingUsing a new as a deposit from a buyer in making an offerThe agent should inform the seller that the deposit is in the form of a note before the seller excepts the offerWhich of the following must be included in the terms of a lease?-duration of the lease -rental amount -description of the property and names of the landlord and tenantWhen can the buyer legally take possession of the propertyWhen the parties agreeThe real estate commissioner considers a real estate licenseeAn employeeThe seller must provide the buyer with a TDS for which of the followingThe sale of a residenceA seller buys a plant for a buyerTo make buyer pay for the propertyIf a broker authorized another broker to work under him as a sub agent, who is primarily responsible?PrincipalIf prior knowledge of the fact would have prevented a third party from entering into the contract, this would beA material factAbel, who is not a licensee, made an offer to purchase Baker's property. The offer was excepted by Baker. While in negotiations with Baker, he will received a higher offer from Charlie. He will purchase the property from bigger and then sold it to Charlie, making a nice profit. Baker learned of the sale and consulted a real estate attorney. The attorney would inform Baker thatHe has no recourse against ableWhich of the following statements is most nearly true concerning buyers agencyThe buyers broker has no agency relationship with the seller or the listing broker and is therefore not liable for their actionsWhich of the following may make a secret profit of the purchase of real propertyOwnerNet leases are commonly used forStoresSeller able excepts Broker Baker's offer to purchase black acre. Broker Charlie took a $4000 deposit from Broker Baker. Seller Abel had agreed to pay broker Charlie a $500 commission. If seller able instructs broker Charlie to deposit the entire $4000 deposit in escrow, broker Charlie shouldDeposit $4000 in escrowA broker can make how many loans during a 12 month period and be exempt from reporting requirements? Number of loans, total broker limit, each loan limit10, $1 million, $250,000Ownership with an undivided interest with no right of survivorship is calledTenants in commonAn exclusive agency listing incorrectly states that the commission was $6 rather than the 6% that was intended. If the seller sells the property himself, then the real estate broker would receiveNothingA real estate commission can be paid as-check -cash -an assigned promissory noteUnder agency law, and agent is generally considered to haveThe impuded authority of his principal one dealing with third partiesJohn owns a life estate based upon his own life. He leases the property to a tenant on a five-year lease. John, the life tenant, dies two years later. What happens to the LeaseIt's terminatedCan an unlicensed person sell property and collect a commission?Yes, if he or she is acting as an attorney-in-factReal properties sold to the state of California by operation of law immediately after real property taxes become delinquent. The owner occupantCan remain in the property undisturbedThe process of expressing anticipated future benefits of ownership and discounting them to a present worth is calledCapitalizationIf seller able held a fee simple estate and sold it to buyer Baker, retaining a life estate in the property and maintaining possession. Seller able then sold the property to buyer Charlie and gave up possession to buy her Charlie. When buyer Baker found out about the sale, he demanded possession of the property. Which of the following is correctBuyer Charlie is entitled to possession of the propertyWhich of the following is used by a buyer to confirm that the amounts in terms represented in a lease are in fact correct?Estoppel certificatesEaston v. Strassburger caused what disclosureTransfer Disclosure Statement (TDS)If a lumberyard delivers lumber to a construction site before the construction loan is recordedAll mechanics liens will take priority over the loanWhen estimating loss of value from depreciation, an appraiser would look at a propertiesEconomic lifeWhich appraisal approaches take accruals for depreciation into accountIncome and costIf one person is delegated by an instrument to act officially on behalf of another, that person is called a(n)an attorney in factFor three generations the Mendez family has owned the mining rights to mine gold on Diego's land. Last month Diego sold his land to a developer who promptly enclosed the land with a large chain-link fence that only had one access, a locked gate. What should the Mendez family doInstitute a quiet title actionA permit must be secured before anyone can offer which of the following for sale to California residentsOut of state subdivided landWhich of the following would produce the highest value estimate in appraising real propertyReproduction costHow many days does a buyer have to cancel a purchase after a real estate transfer disclosure statement is hand-delivered to the buyer?Three daysA lease agreement for nine monthsWould not require an agency disclosureOne area that appraisers find difficult to appraise isAccrued depreciationFraudulent misrepresentation by a real estate broker is-misrepresentation of a material fact -misrepresentation of a material fact with the full knowledge and intent of the broker -misrepresentation of a material fact that influence the buyer to purchase the property and the buyer suffers a lossIf a real estate broker shows a property under an open listing, she shouldWrite a memorandum to the seller notifying him that the broker showed the propertyIf there is a conflict between a pre-printed contract in hand written terms and conditions, which will prevailThe handwritten terms and conditions will take precedence over pre-printed areaMarket data comparisons are used in the cost approach to determineValue of the landWhich of the following would be considered a general lien?-Federal tax lien -franchise tax lien -judgement lienBroker able listed a property from seller Baker, and reserved an option for him to purchase the property himself. If broker able exercises the option he must:-obtain written consent from seller Baker disclosing the amount of profit or anticipated profit he will receive -furnish the seller with any material information he has regarding the property -disclose to the seller if there are any outstanding offers on the propertyAn open agreement would occur whenA buyer enters into an agreement with more than one buyer's agent, while owing compensation only if she uses the buyers brokerWhat is the difference between riparian and littoral rights?Littoral rights refers to lakes and oceansIf a broker does not disclose his membership in a corporation that is buying property listed with the broker, the purchase contract isVoidable by either partyAn appraiser using the market data approach in appraising would be most interested in the dateThe recording occurredPrior to the first lot being sold in a subdivision, a subdivider must give a copy of the public report toAll prospective purchasersAltering escrow instructions once they are signed isOK, if the buyer and seller mutually agree to the changesReplacement cost would use all of the following, exceptCapitalization rateWhen an appraisal is performed on a single family home, to determine living area, the appraiser measuresThe outside of the house onlyAgent able notices a crack in the wall in the doors are not closing properly. able shouldAdvise the buyer to get a soil reportWhen an escrow has reached perfectionAll terms and conditions of the escrow have been metA seller may except a buyers offerBy fax/facsimileWhich of the following factors would not contribute to obsolescenceWear and tear from useA property held in joint tenancy hasNo probateWhich of the following is/are true?If the listing is not an exclusive listing, then it does not require the real estate broker to use diligence in obtaining an offer on the propertyWhat is the most important consideration to a lender when making a loan?Degree of a risk