CA Real Estate Crash Course: Questions With Expert-
Level Solutions
The secondary mortgage market exists to: Right Ans - Provide a
mechanism wherein funds are available to the mortgage lenders to make new
loans.
Much of the California real estate law can be found in which of the following:
Right Ans - Business and professions code
The accumulation of soil on property bordering a flowing body of water can
cause the property owners land to increase in size. Gaining Title by this
method is know as: Right Ans - accession
A party who conducts the foreclosure proceedings upon default of a
promissory note secured by a deed of trust is termed the: Right Ans -
trustee
Upon assignment of a lease: Right Ans - The entire leasehold is transferred.
The most common type of listing contract in California is the: Right Ans -
exclusive right to sell.
Of the following terms, which does not belong:
a. Summation method
b. Sales comparison approach
c. Comparable properties
d. Adjustments Right Ans - Summation method
Walker hired a contractor to install a swimming pool in her home. In the event
the contractor was not paid for their work and it was necessary to file a lien.
The lien created is: Right Ans - A specific lien
When computing capitalization rates, an investor would apply the highest
capitalization rate for which of the following investments:
a. A building leased to the United States Postal Service
b. An apartment complex in a blighted area
c. A ground lease to a national bank
, d. Insufficient data to draw a conclusion Right Ans - b. An apartment
complex in a blighted area
Which of the following appraisal reports is considered the most
comprehensive and complete with neighborhood data and a thorough market
analysis:
a. letter report
b. short report
c. bank narrative report
d. income approach Right Ans - c. bank narrative report
A contract is no longer considered to be executory and is now considered
executed upon the occurrence of which of the following events:
a. Notarization has occurred
b. Complete and full performance
c. Once the contract has been rescinded
d. Any of the above Right Ans - b. Complete and full performance
Part of the subdivision filing process involves investigating the degree and
nature of known flood hazards within an area. The extent of flood hazard
could be described as: Right Ans - Inundation, sheet overflow, ponding
XYZ Bank hired a fee appraiser to appraise a property owned by Harry
Homeowner. The appraiser would be able to discuss his findings with:
Right Ans - XYZ bank
The position of trust assumed by the broker as an agent for a principal is most
accurately described as: Right Ans - A fiduciary relationship
Often times promissory notes contain restrictions on the ability of a borrower
to do certain things. a clause in a loan that prohibits the borrower from paying
off the loan early is known as: Right Ans - A lock-in clause
Consider a scenario wherein a group of real estate brokers came together and
agreed on minimum fees to be charged to sellers of real property. These
brokers would be violating: Right Ans - Anti-trust laws such as the
Sherman Antitrust Act
Level Solutions
The secondary mortgage market exists to: Right Ans - Provide a
mechanism wherein funds are available to the mortgage lenders to make new
loans.
Much of the California real estate law can be found in which of the following:
Right Ans - Business and professions code
The accumulation of soil on property bordering a flowing body of water can
cause the property owners land to increase in size. Gaining Title by this
method is know as: Right Ans - accession
A party who conducts the foreclosure proceedings upon default of a
promissory note secured by a deed of trust is termed the: Right Ans -
trustee
Upon assignment of a lease: Right Ans - The entire leasehold is transferred.
The most common type of listing contract in California is the: Right Ans -
exclusive right to sell.
Of the following terms, which does not belong:
a. Summation method
b. Sales comparison approach
c. Comparable properties
d. Adjustments Right Ans - Summation method
Walker hired a contractor to install a swimming pool in her home. In the event
the contractor was not paid for their work and it was necessary to file a lien.
The lien created is: Right Ans - A specific lien
When computing capitalization rates, an investor would apply the highest
capitalization rate for which of the following investments:
a. A building leased to the United States Postal Service
b. An apartment complex in a blighted area
c. A ground lease to a national bank
, d. Insufficient data to draw a conclusion Right Ans - b. An apartment
complex in a blighted area
Which of the following appraisal reports is considered the most
comprehensive and complete with neighborhood data and a thorough market
analysis:
a. letter report
b. short report
c. bank narrative report
d. income approach Right Ans - c. bank narrative report
A contract is no longer considered to be executory and is now considered
executed upon the occurrence of which of the following events:
a. Notarization has occurred
b. Complete and full performance
c. Once the contract has been rescinded
d. Any of the above Right Ans - b. Complete and full performance
Part of the subdivision filing process involves investigating the degree and
nature of known flood hazards within an area. The extent of flood hazard
could be described as: Right Ans - Inundation, sheet overflow, ponding
XYZ Bank hired a fee appraiser to appraise a property owned by Harry
Homeowner. The appraiser would be able to discuss his findings with:
Right Ans - XYZ bank
The position of trust assumed by the broker as an agent for a principal is most
accurately described as: Right Ans - A fiduciary relationship
Often times promissory notes contain restrictions on the ability of a borrower
to do certain things. a clause in a loan that prohibits the borrower from paying
off the loan early is known as: Right Ans - A lock-in clause
Consider a scenario wherein a group of real estate brokers came together and
agreed on minimum fees to be charged to sellers of real property. These
brokers would be violating: Right Ans - Anti-trust laws such as the
Sherman Antitrust Act
