In a month-to-month periodic tenancy, replacement of the heating unit:
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Terms in this set (148)
Property owner Able gave an exclusive right to sell listing to his broker Baker for a period of 90 days. The agreement provides that broker Baker would earn a 6% commission. Broker Baker commenced efforts to sell the property, advertising it extensively. Thirty days later, Able sent a certified letter to Baker canceling the listing agreement. He indicated that, because he was giving an open listing to other brokers, he did not owe Baker a fee. The terms of the open listing provide for a 5% commission to be paid. Thirty days later one of the agents, to whom Able had given an open listing, sold the property. In this instance:
Subsequent contracts would be void by statute if:a person is formally committed to a mental institution.What is the landlords interest in real property when it is leased to a tenant?an estate in reversionABC Savings and Loan Association negotiates a $200,000 loan with Maria Gonzalez. Maria speaks no English. To complete the transaction, ABC provides loan forms written in Spanish. In the escrow closing statement, Maria is charged a 1/8th % higher interest rate than other borrowers who speak English. The:lender was in violation of the Housing Financial Discrimination act of 1977 and cannot impose an extra chargeIn order to be entitled to a commission, a broker must show that he/she was the procuring cause of the sale under all of the following listings except a/an:exclusive authorization and right to sell.The joining of lots to achieve plottage is called:AssemblageWith a Cal-Vet loan, all of the following are correct, except:An owner may place a second deed of trust on the property.An interest in real property may be acquired by either prescription or by adverse possession. The interest resulting from prescription isthe right to use another's landWhen a principal approves acts already performed for his benefit and without his prior approval, this is called:ratificationSeller Able lists his property for sale with Broker Baker. Seller Able states in the listing agreement that his agent is authorized to accept on his behalf a deposit toward the purchase price in any amount. If Broker Baker brought in a buyer and accepted his deposit, he would:hold it as agent of the buyer until the offer is accepted by the sellerWhat is the best appraisal method for a home built in 1910?Cost approachAn agent, showing a Chicano single-family residences, avoids certain areas in which Asian residents live. This is called:SteeringAfter the publication of intent to sell a property due to non-payment of property taxes, the owner may redeem the property within:Five yearsOn January 10th, a buyer executes a deposit receipt giving the agent a check payable to the seller. He instructs the agent to hold the check until January 30th. The agent should:hold the check without cashing and inform the seller accordingly.In an open, non-exclusive listing situation, the broker who most likely would be paid a commission is the one who has:Communicated acceptance of the offer to the offerorA listing broker must:reveal to the seller the material information that a better offer to purchase the property is imminentWhen legal title is transferred as a result of the sale of real property encumbered by a deed of trust, it is always necessary:for the grantor to deliver the deed.Seller Able sold his home for $100,000 and took back an $80,000 promissory note at an interest of 12% per annum and secured by a first mortgage. Seller Ables home had a fair market value of $90,000. Later Seller Able decided to sell the promissory note and mortgage to Charlie and discounted the note to $75,000. Seller Able wrote on the back of the promissory note, I assign this promissory note to Charlie without recourse. if the maker of the promissory note defaults before any payments are paid, Charlies best course of action is:to foreclose to enforce the payment on the $80,000 promissory noteWhat kind of mobile home can a salesperson/broker sell?Registered mobile homeThe following are essential to the creation of an agency relationship, except:an agreement to pay considerationThe type of property an agent should show a Chicano prospect, if the prospect does not specifically ask to look at properties in a Chicano community is:any home which is available in any community,.What appraisal approach would an appraiser use to appraise a lot that is going to be used to build a single-family home?Market data researchAn agent sells a 50 unit apartment building and makes an analysis. He does not deduct for vacancies, collection losses or other expenses. The buyer has relied on the agents representation. This violation is:A misrepresentationWith regard to depreciation of land, for income tax purposes:Land is not depreciatedWhich of the following can file a mechanics lien?-Subcontractor -architect -truck driverA broker who negotiates an exchange of real property and collects a commission from both principles must:-inform all parties that he is collecting a commission from more than one party to the transaction -inform each party of the exchange price of the properties within one month after the close of the transactionBroker Able listed Seller Bakers home for sale. Seller Baker told Broker Able that there were sewers in and connected to the property and signed the listing to that effect. Broker Able checked with the city and found there were no sewers connected to the property. Broker Able showed the property to Buyer Charlie who did not ask about the sewers and Broker Able sold the property to him without disclosing that there were no sewers connected to the property. Later, Buyer Charlie found that the sewers were not in. Which of the following is correct?Broker Able had a duty to inform Buyer Charlie, even though he did not askEconomic rent is:rent received for a comparable space in the open market.An owner sells his home as is,he must provide the buyer with a real estate transfer disclosure statement.If a buyer purchases a real property where he will take title subject to the sellers existing loan on the property, and the sale is made without the knowledge or consent of the lender, it should be disclosed to both buyer and seller that:-the lender may accelerate the loan if he finds out about it -the sale may not be completed if the lender calls the loan due and the buyer cannot find other financing -the seller remains personally liable for the loan and any potential deficienciesIf there are CC&Rs on a property, they are usually contained in the:DeedA property is not listed for sale. A person who wants the property executes an offer to purchase it through a real estate agent. In doing so, he gives the broker a $5,000 check as a deposit. The broker:can accept the check as the exclusive agent of the buyer.The California Real Estate Commissioner has the authority to:promulgate rules and regulations to enforce the California real estate lawsAn out-of-state broker has referred a prospect to you, being a California broker, you accept the prospect and consummate a sale. You want to split your commission with the cooperating broker. Under the California Real Estate Law:you may pay a commission to a broker from another state.The broker:may not receive directly or indirectly the interest on trust fundsIf a buyer obtains a CLTA standard coverage policy of title insurance, it will cover her for which of the following, except:undisclosed liens against the property incurred by the grantorA real estate agent refuses to show a single family residence to a member of a minority group. Which of the following permits the salesperson to avoid showing the property:If the owner has directed the agent to show the property only when he is physically present, the salesperson should not show the property if the seller is not at home.Deeds of trust and mortgages differ in the:-parties -statute of limitations -titleA purchase agreement and receipt for deposit is signed by both buyer and seller; however, before escrow is opened a fire causing $10,000 in damage occurs in the property. The buyer demands his earnest money deposit back. What should the broker do?return the deposit because the deposit receipt provides for the return of their deposit.Income - expenses - mortgage interest payments =Cash flowThe authority to administer and enforce the California real estate law is provided by the:Real Estate Commissioners RegulationsBuyer Baker made an offer and gave the sellers Broker Charlie a $500 check as a deposit. Before the offer was presented to Seller David, Buyer Baker withdrew the offer. The broker should:return it immediately.An appraiser uses a depth table to appraise:commercial properties.A broker makes misrepresentations to a buyer. His principal (seller) could be subject to:-civil action to compensate the buyer for the brokers misrepresentations. -a rescission of the contract. -court action.When a real estate broker deposits his own personal or business funds in his client trust account, this is considered:-padding -conversion -a violation of the trust securityA non-licensee performs an act for which a license is required. He could be prosecuted by:District Attorney of the county in which the activity occurred.The construction code restricts the building of the structure and the deed restricts the use of the structure. Which takes superiority?Master Zoning LawWhen an adjustable rate loan (ARM) stabilizes above a loan index, the increase above the index rate is called the:MarginThe listing agreement generally authorizes the broker to:-find a purchaser -accept an offer to purchase -accept a depositAn environmental impact report:-makes recommendations regarding mitigation of the environmental impact. -investigates alternative uses for the property, including non-use. -investigates potential harm to the property.A short-rate is:the premium on an insurance policy.Regarding a Real Estate Transfer Disclosure Statement:the seller must make an observation of the condition of the property and fill it outWhen a judgment is ordered, the writ of execution:moves frozen assets to the plaintiffWhen a borrower uses the same creditor to refinance a loan already secured by his home:there is no right of rescission, unless new money is also advanced. Then the transaction is rescindable only to the extent of the new money.A brokers trust account is:Not required by lawAn owner/transferor of a home gave a tenant a lease-option. Under the Real Property Disclosure Act:the owner must give a completed Real Property Transfer Disclosure Statement to the tenant (lessee)/buyer (optionee) before the lease-option contract is signedWho must consent to dual agency?Buyer and sellerWhen a broker balances a trust account with a bank statement, this is called:ReconciliationThe impairment of desirability and usefulness of real property through economic changes is called:ObsolescenceWith regards to the Real Estate Transfer Disclosure form, the broker must:inspect the property and make notes concerning his findings on the form.Maturity in property management means:income has stabilized.If a contract for the purchase of real estate is to be enforceable, consideration must be sufficient relative to the value in order to enforce a suit for:specific performance.Which of the following would be considered a material fact and must be disclosed to the buyer?extensive plumbing repairs are needed in the propertyThe capitalization approach is based primarily on the appraisal concept of:AnticipationWhen a real estate broker is charged with conversion it most generally involves:Clients fundsAll of the following are relationships that a broker has with his principal except:attorney-in-fact relationship.Two real estate brokers agree to a 50%/50% split. The broker/salesperson agreement is a 50%/50% split. The salesperson receives:25% of the total commission.Judgment liens differ from mechanics' liens in that:mechanics' liens could take priority earlier than the date they are recordedA brokers duty to keep a principal informed is called:FiduciaryA standard title insurance policy represents the final results of three successive processes. Which of the following would not be considered as one of those processes?determination of the correct boundary lines through a survey of the property being insuredIf an owner signs an exclusive authorization and right to sell listing but later cancels the agreement, the:owner can cancel the contract, but may be liable for payment of damages under the agreement.A broker must reveal all material facts to his principal. Which of the following would be considered a material fact?the broker has knowledge that a better offer to purchase is coming in.During a walk-thru inspection, the buyer discovers several items that need to be completed. What does the agent do?Inform the seller about the repairs before closing or credit the buyer for the repairs in escrow.To arrive at an effective gross income, an appraiser of rental property would make a deduction for:VacanciesA real estate licensee must by law communicate any offer to his principal:Only if it is in writingTitle insurance takes effect:At close of escrowIf a buyer wins a civil judgment against a broker for fraud, the commissioner:can suspend or revoke the brokers license only after a hearing.Mary Jones, a single woman, purchased an apartment building in her name only. A few years later, she married Bob Smith and purchased a home together in their names a "joint tenants." Mary later sold the apartment building to Charlie Johnson, signing the deed as "Mary Smith." This could result in:A cloud on the titleCash-on-Cash rate of return is:before tax cash flow divided by the total cash investedIf a pest inspector finds no evidence of active infestation in a single-family home they inspect, but does find items that are likely to occur, the cost of correcting the condition will be with:the buyer if he chooses to have the condition correctedA lender would most likely not enforce a due-on-sale clause in a deed of trust under which of the following circumstances?When there are more houses for sale than there are buyers and deflation occursA Transfer of Disclosure Statement, under California law, must be prepared by:the transferor.On Aug. 1, 2011 Able agreed to purchase Bakers home. Both parties agreed that possession would be transferred on Sept. 30, 2012 and that the property taxes on the property would be prorated as of the date of possession. On Nov. 1, 2011 Baker paid the property taxes for the tax year 2011-2012 According to the closing statement, which of the following is true?Baker paid Able for 3 months taxes.The attic of a home needs insulation and the contract states that the seller is responsible for correcting the problem. However, the buyer pays for the correction. Who is responsible for adding or repairing the insulation?seller, no matter who requests it.Warehousing loans refers to:a lender seasoning loans by developing a record of payments before selling them on the secondary mortgage market.Who on a brokers staff can sign a formal agreement?Salesperson who has been delegated the authority to review and sign contracts on behalf of the brokerFiduciary obligations include:-Truth -confidentially -competenceWhen a levy is made on all property owned by a debtor in a specific county, it is known as:A judgementIf a seller would like to relieve himself of primary liability for the payment of a note and trust deed, he will find a buyer willing to:assume liability for the note and deed or trust.If a seller lies regarding a material fact on a listed property and the property falls out of escrow, the seller is liable to pay:a commission plus damages for defending against buyer's suit.Property taxes and insurance would be classified under:operating expensesA broker would be required to maintain trust records when:-a check is promptly delivered to the seller -a check is promptly delivered to escrow -a check is promptly delivered to the seller and was given as a deposit to an offer to purchase that contained a contingency clauseWhen appraising real property, the greatest emphasis on the present worth of future benefits would be through the use of:Income approach Income (future benefits) divided by the capitalization rate = property value (present worth), or (I divided by R =V).Since real estate takes more time to market than securities, its return should be:higher than bonds or first mortgages.Under California Law who is entitled to a copy of the pest control report in all cases:SellerA minor or incompetent person may:acquire real property through gift or inheritance.Regarding a broker and salesperson agreement:The broker only must keep it for three years after termination of salesperson.When unpaid property taxes are liened, they are:superior to a prior recorded trust deed.When appraising a restaurant building, an appraiser would most likely use the:Income approachA grant deed to a person under a fictitious name is:ValidYou are a California real estate broker. A prospect is referred to you by an out-of-state broker and you consummate a sale by you. You want to split your commission with the cooperating broker. Under the California Real Estate Law:you may pay a commission to a broker of another stateIn arriving at an effective gross income figure, an appraiser of rental property makes a deduction for:VacancySeller grants right to sell and broker agrees to use diligence in obtaining a purchaser, this is called:AgencyWhich of the following is considered a business opportunity?-Sale of a business and goodwill of the enterprise. -Sale or lease of a business and goodwill of the business opportunity. -Lease of an existing business opportunity.To determine what rent to charge for the units in his complex, an apartment building owner can rely upon:the comparison approach.The maximum commission a broker may charge a seller for the sale of residential income property is:negotiableAll of the following statements concerning riparian rights are true, except:riparian rights cannot be severed from the property by prescription or condemnationA listing broker who appoints a subagent owes a fiduciary duty to the:SellerIn a business partnership, if one of the partners dies then the surviving partner:becomes exclusive manager of the partnership business and retains title to the partnership property until he winds up the partnership businessIf the beneficiary is given a deed in lieu of foreclosure, the beneficiary:takes responsibility for any junior loans that might be on the property.Under no circumstances may a broker:misrepresent material factsSix parcels are encumbered under one security device, this is called:Blanket trust deedIf an agent does not disclose dual agency to both parties:-he may be disciplined. -he may not receive his commission. -it may be grounds for either party to rescind.If Able grants a life estate to Baker for Baker's life, during Baker's lifetime Able holds:an estate in reversion.A holographic will is:A hand-written willAn appraiser would not be in violation of the Code of Ethics of the American Institute of Real Estate Appraisers if he:performs an appraisal and collects a fee for his services on a property in which he has interest, if this fact has been disclosed to his clients in his report.If a real estate broker dies, what happens to the listing contracts he has with his clientsThey are automatically terminated.When appraising residential properties, the cost approach is most appropriate:With new constructionA pest inspection is made on inaccessible areas of a residence and the property is damaged as a result of it. The deposit receipt will usually make which of the following parties responsible?buyerRealistic rents for an office space can be determined through the:comparison approach.A binding escrow requires:-a valid binding contract -a conditional deliveryA real estate broker hires a "hostess" to work for a $35 flat fee. The hostess provides property information and figures for the sale of the property, but does not sign any documentation. Which of the following is true?It is illegal because the hostess is required to be a licensed real estate agentA deed of trust can be foreclosed by:trustee's sale or judicial foreclosure.When a salesperson leaves the employ of a broker, the broker is required by the Real Estate Law to notify the Real Estate Commissioner in writing. If the salesperson's discharge is a result of a violation of the Real Estate Law, the broker is required to:file a certified written statement of the facts with the Real Estate Commissioner.Which of the following is an open planning design with simplicity, horizontal lines, easy access outside, window panes, and new construction?ContemporaryRiparian rights can be severed by:condemnation or prescription.If a borrower is unable to make payments and falls two months behind in submitting required trust deed loan payments, he/she:has a right of reinstatement.Can a broker have an interest-bearing trust account?yes, if the interest paid is credited to the client and the client approves the trust account being interest-bearingIf an offer is refused by the seller, the broker will try to obtain:A counter offerHighest and best use would involve:Net incomeConsideration must be reasonable, but need not be major, to require:Specific performanceRiparian rights:include the right to reasonably appropriate water as needed.A selling agent sold a property and gave part of the commission to the buyer. This is:Lawful, if reported to the seller.Which of the following is the buyer exempt from withholding 10% of the selling price?seller is a foreign person and the home is less than $300,000 and has been occupied as his personal residenceAble accepted an offer from Baker to purchase Blackacre. Before the contract was formally accepted, Baker made inquiries and was assured the property was connected to a sewer line. The contract was accepted, but escrow had not yet closed when Baker discovered that there was not a sewer connection, but that a new septic tank had been recently installed on the parcel. Baker could:rescind the contract/back out of the contract before close of escrow.An apartment building owner is considering adding a swimming pool to his property. She asks an appraiser for his opinion, his answer would be based upon the appraisal principle of:contributionA contract is non-assignable when:it is a personal service contract.A real estate broker must keep a copy of a purchase agreement and receipt for deposit for minimum of three years. The three years starts at:Close of escrowWhen the loan proceeds disbursed by the lender are less than the face value of the note, this usually called:Discounting