CA Real Estate Exam- Practice with Complete Solutions

Two friends hold title as joint tenants. One borrowed money and executed a deed of trust against the property. In terms of affecting title this action could: - ANSWER-Place the beneficiary in a precarious position should the borrower die before the debt is paid. Joint tenant estate held by two joint tenants is severed and ended by the following: - ANSWER-A foreclosure by one of the joint tenants. One of the joint tenants transfers his interest to a third party. One of the joint tenants sell his interest. A man owns six seperate parcels of real property. He wants to offer all of the parcels as security for a mortgage loan. The mortgage that he will obtain will probably be? - ANSWER-A blanket mortgage All of the following acts of one joint tenant terminates a joint tenancy except when the joint tenant: - ANSWER-Mortgages his or her share Avulsion - ANSWER-Is the sudden tearing away of land by the the action of water When appraising a home build in 1910 the appraiser must use: - ANSWER-Today's cost and today's reproduct ion cost The appraiser gives an 30 year old home a rating of 6 years is called: - ANSWER-Effective age a home painted in 1972, even if the seller repainted the property a lead based paint booklet is required, if not, the ommission allows the buyer to: - ANSWER-cancel the transaction. Not funtional obsolescense - - ANSWER-Proximity of nuisances Intestate means: - ANSWER-Someone that left no will A principle may request an accounting from the real estate agent of his funds : - ANSWER-At any time The seller's responsibility is to transfer the property: - ANSWER-Free and clear When compare to real estate, stocks and bonds are: - ANSWER-More liquid Which of the following are liens? - ANSWER-Incometax Judgements Attachment subagents: - ANSWER-They work for the seller If a builder pays $35 an hour to a hostess, to perform an open house, to answer questions: - ANSWER-a license is required to answer questions Who must disclose Mello - ANSWER-Seller (OWNER) if the electrical was intalled by the son-in-law of the seller, and not to code and the buyer moves in, and after, the property catches on fire : - ANSWER-the real estate agent is innocent of any wrong doing Miles sold a home to North with the help of Olsten, if the buyer (North) finds out that something was not properly disclose by Miles and Olsten, this is called: - ANSWER-Fraud Logan sold a home to Hughes, if Hughes backs out: - ANSWER-Logan can sue for a specific performance A buyer pays for which of the following? - ANSWER-Escrow, Title, Insurance The granting of doing business or to sell a product under a name with restrictions from the grantor is called: - ANSWER-Franchise Agents may get sued for: - ANSWER-Any Wrong doing A person who is delegated in an intrument to legally do something for another person in his stead is called - ANSWER-Attorney in fact The terms of exclusive right to sell listing are - ANSWER-The exact requirements of the sellers instructions An advertisement to lease properties only to married couple is - ANSWER-Illegal The offers must be presented: - ANSWER-even if they are oral and in writing Intangible personal property: - ANSWER-is not taxible The real estate commissioner" - ANSWER-Promulgates the real estate law Unemployment: - ANSWER-Does not affect the interest rates directly Payment of Money - ANSWER-is not necessary for a valid contract To hire self employed agents is an advantage: - ANSWER-Is an advantage because the broker doesnt collect social security Balloon payment means: - ANSWER-all balances due at once If the A.P.R. is disclose: - ANSWER-No additional disclosures are required An easement can be canceled by signing a: - ANSWER-Quitclaim deed For income tax purposes improvements are - ANSWER-Added to the basis of the property. For income tax purposes improvements are - ANSWER-Added to the basis of the property Information concealment by an agent is - ANSWER-Misrepresentation A strip lines of stores are: - ANSWER-Shopping centers In a counter offer: - ANSWER-the buy may reject to perform or to cancel The agency is terminated - ANSWER-if the property is destroyed by fire Outmoded design is: - ANSWER-Function absolescene In a purchase money trust deed" - ANSWER-A loan disclosure is required A lender may evict a borrower within - ANSWER-3 months A mispelled name in a deed: - ANSWER-May be corrected with a quitclaim deed A standard policy of title insurance doesnt cover - ANSWER-property lines oral commission - ANSWER-are legal if the seller selects to do so Conflicts with the LA county codes and the uniform codes - ANSWER-the one with the highest standards of safety will apply An offer presented with a $1000 note - ANSWER-Communicate to the seller the type of deposit before acceptance 1/2 a mile by 1/2 miles is: - ANSWER-160 Acres When appraising a site the appraiser applies the - ANSWER-Highest and best use Successor liability has to do with - ANSWER-The Alcohol Beverage Control Board