Real Estate Final Exam Questions With 100% Correct Answers

REAL ESTATE FINAL EXAM QUESTIONS WITH 100% CORRECT ANSWERS "For about how much assessed value is the Homeowner's Property Tax Exemption? - CORRECT ANSWER $7,000" "Misuse of the real estate appraisal report or coercion of the appraiser are now: - CORRECT ANSWER federal felonies." "A person who is authorized by the Secretary of State to witness the acknowledgement of documents is known as a(n): - CORRECT ANSWER notary public." "A broker who mixes personal funds with his or her principal's funds is guilty of: - CORRECT ANSWER commingling." "Which of the following is NOT one of the forces that affect the value of a neighborhood? - CORRECT ANSWER Past sales considerations" "The federal civil rights law that applies to people with disabilities and protects them from discrimination is the: - CORRECT ANSWER Americans with Disabilities Act" "When prices rise due to shortages of available properties, it is known as a: - CORRECT ANSWER seller's market." "Other than the initial small deposit to open the account, when are money deposits the personal property of the broker? - CORRECT ANSWER Never" "Which "American" title insurance is usually requested by lenders? - CORRECT ANSWER ALTA policy" "Which of the following is a requirement of a lease? - CORRECT ANSWER length of lease amount of rent names of parties" "Which of the following is NOT an essential element of a real estate contract? - CORRECT ANSWER Cash" "The California Department of Veteran's Affairs loan program is commonly known as the: - CORRECT ANSWER CalVet Program." "The market data method (comparison approach) is the most common approach for: - CORRECT ANSWER houses condos vacant land" "Which of the following is FALSE concerning a grant deed? - CORRECT ANSWER It is signed only by the grantee." "Which of the following is NOT a type of property lot? - CORRECT ANSWER Curb lot." "The rate the borrower is actually paying (including interest, points, and loan fees) is called: - CORRECT ANSWER the effective interest rate." "The Real Estate Commissioner: - CORRECT ANSWER enforces the Real Estate Law." "When an improvement is permanently attached to real property it becomes: - CORRECT ANSWER real property." "If the "exact" terms of the listing agreement are met, the listing broker is entitled to a commission, even if the: - CORRECT ANSWER owner refuses to sell to the buyer." "Which advisory form reminds the buyer and seller of the importance of investigating a property before the sale? - CORRECT ANSWER Statewide Buyer and Seller Advisory" "The term "EER" is used to measure: - CORRECT ANSWER energy efficiency (the higher the better)" "A lien placed on more than one parcel, all parcels having the same owner, is known as a: - CORRECT ANSWER blanket encumbrance." "An ownership interest in real property that only exists for the life of any designated person or persons (often the grantee) is called a(n): - CORRECT ANSWER life estate." "The salesperson exam requires what percent of correct answers to pass? - CORRECT ANSWER 70%" "Of the following, who is permitted to purchase property in California without court approval? - CORRECT ANSWER Foreign persons (aliens)" "A recorded public history of a specific property is called a: - CORRECT ANSWER chain of title." "CC&Rs refer to: - CORRECT ANSWER covenants, conditions, and restrictions." "Prior to receiving communication of its acceptance, a buyer can withdraw an offer: - CORRECT ANSWER in writing personally by registered mail" "The current status of items from the county records affecting the property's title is called the: - CORRECT ANSWER preliminary title report." "Which of the following is NOT a California starting point in the U.S. Government Survey system? - CORRECT ANSWER Baja Base Line and Meridian" "Which of the following are considered non-institutional lenders? - CORRECT ANSWER private lenders mortgage companies credit unions" "An agency is terminated by operation of law when: - CORRECT ANSWER the agency agreement expires the broker or seller dies the property is destroyed" "The nominal interest rate is: - CORRECT ANSWER stated on the note" "If a rental property is sold, the rents of the tenants are: - CORRECT ANSWER prorated in escrow." "An incompetent person: - CORRECT ANSWER is of unsound mind cannot individually contract must have court approval to contract" "An "REIT" is a: - CORRECT ANSWER real estate investment trust." "The cost of approach is most effective: - CORRECT ANSWER with new, unique, or public buildings." "In real estate, the person who acts for and with the authority of another is called a(n): - CORRECT ANSWER agent." "To be valid, a lease need NOT include the: - CORRECT ANSWER words "let or demise"" "Which of the following is an example of a voluntary lien? - CORRECT ANSWER Trust deed." "Which word best describes the effects of income taxes as your income increases? - CORRECT ANSWER Progressive" "If a property is to be returned to the grantor after a life estate is terminated, it is referred to as a(n): - CORRECT ANSWER estate in reversion." "An information booth is called a(n): - CORRECT ANSWER kiosk." "In a trust deed, the beneficiary is the: - CORRECT ANSWER lender." "The original housing law in California that deals with discrimination in business is called the: - CORRECT ANSWER Unruh Civil Rights Act." "How many square feet are in an acre? - CORRECT ANSWER 43,560" "Which of the following is an important tax date to remember? - CORRECT ANSWER November 1 December 10 February 1" "A document given to a tenant stating that he or she must pay past due rent or vacate is known as a(n): - CORRECT ANSWER three-day notice to pay" "Which of the following would best describe an open listing? - CORRECT ANSWER nonexclusive" "Depreciation can be: - CORRECT ANSWER curable incurable loss in value from any cause" "A mechanic's lien can be filed against a property by someone who has furnished which of the following services? - CORRECT ANSWER landscaping roofing plumbing" "You enter a hardware store where you have an account, pick up a pair of $5.00 pliers, and wave them at the manager as you leave the store. This would be an example of a(n): - CORRECT ANSWER implied contract." "Which of the following is NOT a test to determine whether an item is a fixture? - CORRECT ANSWER Date of purchase" "Which of the following statements is FALSE concerning economic obsolescence? - CORRECT ANSWER It is due to wear and tear." "A Federal Estate tax return must be filed for any U.S. resident whose gross estate exceeds: - CORRECT ANSWER $10,000,000." "An outdated kitchen would be an example of: - CORRECT ANSWER functional obsolescence" "What is the term used when a person leasing a property remains after the expiration of the stated term? - CORRECT ANSWER estate at sufferance." "A real estate license for both salesperson and a broker must be renewed every: - CORRECT ANSWER four years." "One-half of a section has how many acres? - CORRECT ANSWER 320" "The bottom portion lining a doorway or window is the: - CORRECT ANSWER sill." "The Fair Employment and Housing Act prohibits: - CORRECT ANSWER redlining." "If a landlord knows that there is a current bed bug infestation, he or she: - CORRECT ANSWER cannot show or rent vacant units." "The fundamental goal of the California Housing Finance Agency (Cal HFA) is to: - CORRECT ANSWER help minority buyers obtain financing for new home purchases." "Under the Department of Real Estate Commissioner's rules and regulations, which of the following would be required to have a written employment contract with a broker? - CORRECT ANSWER A real estate broker working for another real estate broker." "When property is legally described using the U.S. Government Rectangular Survey System, the intersections of the north-south lines with the east-west lines are known as: - CORRECT ANSWER base lines and meridian lines." "The type of misrepresentation which occurs least often in a real estate sale would be: - CORRECT ANSWER malicious misrepresentation" “Zoning is under the control of: - CORRECT ANSWER government agencies." "A contract that is binding and enforceable in a court of law is said to be: - CORRECT ANSWER valid." "Escrows base monthly prorations on how many days? - CORRECT ANSWER 30" "The area of a rectangular lot that is 50 feet wide by 100 feet deep is: - CORRECT ANSWER 5,000 sq. ft." "Real property consists of: - CORRECT ANSWER land and structures on the land anything incidental to the land anything appurtenant to the land" "What is the section in the Residential Listing Agreement (Exclusive Authorization and Right to Sell) that can entitle a broker to a commission even after the termination of the listing? - CORRECT ANSWER Safety Clause" "How many square feet are in 1 acre? - CORRECT ANSWER 43.560" "A month-to-month rental agreement is usually a: - CORRECT ANSWER periodic tenancy." "You are a landlord who discovers that one of your tenants is having new carpet installed in his apartment without your consent. To protect yourself, you should file a(n): - CORRECT ANSWER notice of non-responsibility." "For all practical purposes, discrimination laws evolved from Title VIII of the Civil Rights Act of 1968, 13th Amendment to the U.S. Constitution, and the U.S. Supreme Court Case? - CORRECT ANSWER Jones v. Mayer" "The closing date is: - CORRECT ANSWER the date the documents are recorded." "Which of the following is TRUE concerning negotiable instruments? - CORRECT ANSWER -They are easily transferable from one person to another. -Promissory notes are considered negotiable instruments. -The most common example of a negotiable instrument is a personal check." "The seller must provide the buyer of a condominium with: - CORRECT ANSWER the CC&Rs the bylaws a copy of the most recent financial statement" "Which of the following is considered the most popular real estate brokerage websites? - CORRECT ANSWER and " "If the prospective investor of real property is most concerned with making money off the usefulness of the improvements, he or she would be most concerned with: - CORRECT ANSWER economic life remaining in the improvements." "An appraiser using the market approach collects many recent comparable sales. If a comparable property has a feature that is NOT present in the subject property, the estimated value of the feature is: - CORRECT ANSWER subtracted from the sales price of the comparable." "An oath or affirmation made before a notary public that the content of an instrument is true is called a(n): - CORRECT ANSWER verification." "Which of the following statements constitutes and example of progression? - CORRECT ANSWER A home of lesser value is worth more when located among homes of greater value." "An agent who intentionally shows minorities homes for sale in a minority neighborhood only and refuses to communicate the availability of housing in other neighborhoods is guilty of: - CORRECT ANSWER steering." "Which of the following forms are included in the "Listing Package?" - CORRECT ANSWER -Disclosure Regarding Real Estate Agency Relationship -Possible Representation of More than One Buyer or Seller - Disclosure and Consent -Wire Fraud and Electronic Funds Transfer Advisory" "The acronym "CLTA" stands for: - CORRECT ANSWER California Land Title Association" "Which of the following is true about the salesperson's exam? - CORRECT ANSWER 150 multiple choice questions lasts three hours and fifteen minutes requires 70% correct score to pass" "If a buyer defaults on a conditional sales purchase contract (land contract), who would file a quiet title action to remove the cloud on the title? - CORRECT ANSWER Seller." "The "Purchase Agreement Package" includes which of the following forms? - CORRECT ANSWER -Disclosure Regarding Real Estate Agency Relationship -Buyer's Inspection Advisory -Wire Fraud and Electronic Funds Transfer Advisory" "Noninstitutional lenders who usually lend their own money and then sell their loans to others and service the loans are called: - CORRECT ANSWER mortgage bankers." "A fee estate that is subject to particular limitations imposed by the grantor of the estate is called: - CORRECT ANSWER a fee simple defeasible estate" "Mello-Roos liens: - CORRECT ANSWER -require a seller and/or salesperson to disclose -are municipal bonds -usually fund street improvements" "A real estate professional who assists agents and brokers in the processing of a real estate transaction all the way through escrow is known as a(n): - CORRECT ANSWER transaction coordinator" "Real property subject to a lien is referred to as: - CORRECT ANSWER encumbered." "Which of the following is NOT usually prorated in escrow? - CORRECT ANSWER Title insurance" "The "Pest Control Inspection Report and Certification" is also called the: - CORRECT ANSWER termite inspection." "In order for victims of domestic violence to terminate a lease, they must provide the landlord a copy of a police report that a domestic violence report has been filed and a written: - CORRECT ANSWER 30-day termination notice." "When the Federal Reserve wants a "loose" money market, it: - CORRECT ANSWER buys back bonds lowers the discount rate lowers the reserve requirements of banks" "When a residential tenant vacates a residential rental unit, the landlord has how long to return any unused portion of the tenant's security deposit? - CORRECT ANSWER 21 calendar days"