CA Real Estate Salesperson Exam Solved 100%

A property owner has an easement appurtenant on her property. One day the property is sold to another party who is opposed to the easement. Following the closing, this particular form of easement does what? - ANSWER-transfers with the owner to a new property. A property owner is precluded by deed restriction from developing a thirty foot boat dock. The limitation prompts the owner to sell to another party. The new owner takes? - ANSWER-takes title subject to the same restriction. Which of the following is an important function of the secondary mortgage market? - ANSWER-Participants sell mortgage-backed securities in order to buy pools of loans. The model property sales contract prepared by the California Association of Realtors is? - ANSWER-Available for use by brokers but not required. A farmer temporarily installs produce coolers in a leased farm stand in order to prevent spoilage. The coolers would be considered what? - ANSWER-Trade fixtures that are personal property. It is an escrow violation for a broker handling escrow funds to? - ANSWER-Record a deed without written consent of the party whose real property interest is being conveyed. In the income capitalization approach, an appraiser? - ANSWER-Estimates net income and applies a capitalization rate to it. To protect against possible conflicts of interest, the Commissioner of Real Estate must? - ANSWER-Not have an interest in any real estate firm. For the proper handling of client and owner monies, a property manager is generally required to? - ANSWER-Maintain a special trust account in a qualified financial depository. After changing her telephone number, licensee Veronica must notify the Commissioner of the change in how long? - ANSWER-within 30 days Cash flow is a measure of how much pre-tax or after-tax cash an investment property generates. To derive cash flow it is therefore necessary to exclude what expense? - ANSWER-Cost Recovery Expense A transfer facilitator in a residential transaction represents who? - ANSWER-Neither buyer nor seller Net operating income is equal to? - ANSWER-Potential gross income minus vacancy and credit loss minus expenses. The loan-to-value ratio is used as an underwriting mechanism because? - ANSWER-The loan amount needs to be less than the property's value. A listing broker sells a listed property to a buyer who is not represented by a broker. The listing agent is now? - ANSWER-A single agent for the seller. What is the essential purpose of legal descriptions of real property? - ANSWER-To create a consistent, unchanging standard for uniquely locating a property. Which of the following are examples of closing items not prorated between buyer and seller? - ANSWER-Inspection fees. When a salesperson receives a check for earnest money from a prospective buyer, the salesperson must - ANSWER-Give the deposit to his or her broker immediately unless instructed otherwise. Real estate contracts that are not personal service contracts - ANSWER-May be assigned. A broker associate is under contract with an employing broker as an independent contractor. The associate is now? - ANSWER-The broker's agent. A buyer agrees to all terms of a seller's offer except the length of time for a contingency to procure financing. The buyer extends the financing period in the offer by one week, signs the form, and mails it back to the seller. At this point the seller's offer is? - ANSWER-Is void. Why is a wraparound mortgage loan potentially interesting to a home seller as an investment? - ANSWER-Disclose a material fact. One difference between a cooperative estate and a condominium estate is that? - ANSWER-A condominium owner owns a unit of air space whereas the co-op owner owns a proprietary lease. It's an escrow violation for a broker handling escrow funds to - ANSWER-Record a deed without written consent of the party whose real property interest is being conveyed. What is a lien-theory state in contrast to a title-theory state? - ANSWER-A state in which a mortgagor retains title to the property when a mortgage lien is created.