Legal Aspects Exam Questions and
Answers
Under California law, if a subdivision has fewer than five lots, the developer only
needs to file a: - ANSWER-Parcel map
Amy owns shares of stock in the corporation that holds title to the building she lives
in, and she has a long-term lease on her unit. Amy lives in a: - ANSWER-
Cooperative
When do growing crops become personal property? - ANSWER-Upon constructive
severance
The federal Endangered Species Act protects: - ANSWER-Endangered plants only
on federal land; endangered animals on all land in the U.S.
Channeling prospective renters into specific neighborhoods based on race is an
example of: - ANSWER-Steering
Suppose an agent has no express authority when she commits an act that benefits
the principal, but the principal approves the act after the fact. This creates an agency
by: - ANSWER-Ratification
A real estate brokerage would commit an antitrust violation if it had: - ANSWER-An
agreement with another brokerage setting commission splits for all transactions
California has abolished the fee simple: - ANSWER-Determinable
The Real Estate Settlement Procedures Act (RESPA) prohibits: - ANSWER-All of the
above (Kickbacks, unearned fees, a seller requiring a buyer to use a particular title
company)
Under CERCLA, a potentially responsible party (PRP) may include: - ANSWER-All of
the above (the polluter, now a formal owner. An owner who bought the property after
the pollution occurred, but whose examination wasn't thorough enough to discover
the pollution. An owner who bought the property after the pollution occurred, and
whose examination uncovered the old pollution)
Which of the following is true? - ANSWER-Leases for over a year must be in writing
and signed by the lessor
Which of the following statements about title insurance is false? - ANSWER-If a
problem occurs with the title, the insurer is always liable for the total amount of the
insured's losses
, Which of the following statements about dual agency is false? - ANSWER-A dual
agent may reveal to the seller the maximum price the buyer is willing to pay for the
property
The duty of _______ requires an agent to act ethically, to follow the rules, and to
accept responsibility. - ANSWER-Integrity
Martin and Harris are both brokers. They run into each other at a dinner party, and
Martin suggests that they start a rumor that the agents at the Curtis brokerage break
into listed properties and steal the owners' jewelry. Harris goes along with the idea,
and eventually Curtis goes out of business. - ANSWER-This is an illegal conspiracy
to restrain trade by discouraging consumers from using a competitor's services
Under California law, a prepayment penalty on the early payoff of a residential loan
can be applied only during the first: - ANSWER-Five years
An activity or conduct that interferes with a property owner's use and enjoyment of
her property is considered to be a/an: - ANSWER-Nuisance
In California, a successful adverse possession claim requires possession of the
property for at least: - ANSWER-Five years
A dispute resolution method where a neutral third party facilitates discussion
between parties but does not impose a decision is: - ANSWER-Mediation
Any of the following could be a common element in a condominium building
EXCEPT: - ANSWER-A hallway in an individual unit
The greatest estate that can exist in land is the: - ANSWER-Fee simple absolute
A government takes title to a portion of a private citizen's property, in order to widen
a road. In return, the government pays the owner the fair market value of the land
that was taken. This occurs through what type of legal action? - ANSWER-
Condemnation
Broker Jones operates her brokerage business under the name Glorious Realty. She
registered a fictitious business name statement for the name Glorious Realty; her
real estate license is issued in her name, Tabitha Jones. - ANSWER-Broker Jones
has violated the license law; her real estate license must be issued under the
fictitious name
If a private restriction runs with the land, future owners of the property: - ANSWER-
Must obey the restriction
Which of the following is not always a requirement for a valid contract? - ANSWER-
In writing
CERCLA's Superfund is designed to: - ANSWER-Pay cleanup contractors when a
potentially responsible party cannot be located or avoids financial liability
Answers
Under California law, if a subdivision has fewer than five lots, the developer only
needs to file a: - ANSWER-Parcel map
Amy owns shares of stock in the corporation that holds title to the building she lives
in, and she has a long-term lease on her unit. Amy lives in a: - ANSWER-
Cooperative
When do growing crops become personal property? - ANSWER-Upon constructive
severance
The federal Endangered Species Act protects: - ANSWER-Endangered plants only
on federal land; endangered animals on all land in the U.S.
Channeling prospective renters into specific neighborhoods based on race is an
example of: - ANSWER-Steering
Suppose an agent has no express authority when she commits an act that benefits
the principal, but the principal approves the act after the fact. This creates an agency
by: - ANSWER-Ratification
A real estate brokerage would commit an antitrust violation if it had: - ANSWER-An
agreement with another brokerage setting commission splits for all transactions
California has abolished the fee simple: - ANSWER-Determinable
The Real Estate Settlement Procedures Act (RESPA) prohibits: - ANSWER-All of the
above (Kickbacks, unearned fees, a seller requiring a buyer to use a particular title
company)
Under CERCLA, a potentially responsible party (PRP) may include: - ANSWER-All of
the above (the polluter, now a formal owner. An owner who bought the property after
the pollution occurred, but whose examination wasn't thorough enough to discover
the pollution. An owner who bought the property after the pollution occurred, and
whose examination uncovered the old pollution)
Which of the following is true? - ANSWER-Leases for over a year must be in writing
and signed by the lessor
Which of the following statements about title insurance is false? - ANSWER-If a
problem occurs with the title, the insurer is always liable for the total amount of the
insured's losses
, Which of the following statements about dual agency is false? - ANSWER-A dual
agent may reveal to the seller the maximum price the buyer is willing to pay for the
property
The duty of _______ requires an agent to act ethically, to follow the rules, and to
accept responsibility. - ANSWER-Integrity
Martin and Harris are both brokers. They run into each other at a dinner party, and
Martin suggests that they start a rumor that the agents at the Curtis brokerage break
into listed properties and steal the owners' jewelry. Harris goes along with the idea,
and eventually Curtis goes out of business. - ANSWER-This is an illegal conspiracy
to restrain trade by discouraging consumers from using a competitor's services
Under California law, a prepayment penalty on the early payoff of a residential loan
can be applied only during the first: - ANSWER-Five years
An activity or conduct that interferes with a property owner's use and enjoyment of
her property is considered to be a/an: - ANSWER-Nuisance
In California, a successful adverse possession claim requires possession of the
property for at least: - ANSWER-Five years
A dispute resolution method where a neutral third party facilitates discussion
between parties but does not impose a decision is: - ANSWER-Mediation
Any of the following could be a common element in a condominium building
EXCEPT: - ANSWER-A hallway in an individual unit
The greatest estate that can exist in land is the: - ANSWER-Fee simple absolute
A government takes title to a portion of a private citizen's property, in order to widen
a road. In return, the government pays the owner the fair market value of the land
that was taken. This occurs through what type of legal action? - ANSWER-
Condemnation
Broker Jones operates her brokerage business under the name Glorious Realty. She
registered a fictitious business name statement for the name Glorious Realty; her
real estate license is issued in her name, Tabitha Jones. - ANSWER-Broker Jones
has violated the license law; her real estate license must be issued under the
fictitious name
If a private restriction runs with the land, future owners of the property: - ANSWER-
Must obey the restriction
Which of the following is not always a requirement for a valid contract? - ANSWER-
In writing
CERCLA's Superfund is designed to: - ANSWER-Pay cleanup contractors when a
potentially responsible party cannot be located or avoids financial liability
