California Real Estate National Exam
Questions with Answers
An estate in reversion describes
the interest of a landlord under a lease
the interest of the buyer under a contract for deed
the interest of the trustee under a deed of trust
the interest of a lessee under a lease - ✔✔the interest of a landlord under a lease
The phrase "of indefinite duration" is most commonly used when defining what type of estate?
Fee Simple
Estate at Sufference
Less-than-freehold
For years - ✔✔Estate at Sufference
Special assessments differ from real property taxes in that
a special assessment is levied to pay for a specific improvement
a special assessment is levied against only those properties that benefit from the improvement
a special assessment is a one-time tax levied only when a property is benefited by a public
improvement
all of the above - ✔✔all of the above
In a 1031 exchange
a party to the exchange can deduct a loss on the exchange
the exchange property must be held for income, investment, or use in trade or business
each party must include "boot" in the trade as well as like property of equal value and equity
,receipt of boot will eliminate the tax liability of the exchanger of the property with the greatest
value - ✔✔The exchange property must indeed be held for income, investment, or use in a
trade or business. Personal-use properties do not qualify for a 1031 exchange.
Deed restrictions are
specific liens.
encumbrances.
general liens.
none of the above. - ✔✔none of the above.
The Federal Housing Administration (FHA)
makes loans directly to qualified homebuyers.
buys mortgages from private lenders in the secondary market.
guarantees loans made by private lenders.
insures loans made by private lenders. - ✔✔insures loans made by private lenders.
A real estate licensee farming an area tells homeowners that a minority group is moving in and,
as a result, there will be a decline in market value for the neighborhood. This conduct is an
example of the illegal practice of
discriminatory misrepresentation
steering
redlining
blockbusting - ✔✔blockbusting
The market data approach is used by an appraiser to determine the
building value less depreciation of the land
estimated cost of replacement
rate of anticipated appreciation
, value of vacant land - ✔✔value of vacant land
The Real Estate Commissioner is empowered to
impose a fine up to $25,000 if it is in the public interest to impose a fine rather than suspend or
revoke a license
impose a jail sentence for licensees found guilty of conversion
force property sellers to comply with the demands of property buyers during contract
negotiations.
enforce Real Estate Law by investigating and disciplining licensees who violate provisions of the
law. - ✔✔enforce Real Estate Law by investigating and disciplining licensees who violate
provisions of the law.
Involuntary alienation occurs when
a property owner is forced to sell to a resident alien under Fair Housing Laws
an interest in property is transferred against the will of an owner or without affirmative action
by the owner through operation of law, natural processes, or adverse possession
a broker's license is suspended by the Real Estate Commissioner because of alienation of the
complaining client
a property owner conveys title to a purchaser - ✔✔An interest in property is transferred against
the will of an owner or without affirmative action by the owner through operation of law,
natural processes, or adverse possession.
Under FIRPTA
escrow agents must notify the Department of Immigration if a purchaser of real property is a
foreign investor
escrow agents are required to withhold 15% of a foreign seller's amount realized on the sale
and send it to the IRS
escrow agents must notify the broker if a principal is a foreigner
a resident alien cannot buy or sell real property - ✔✔escrow agents are required to withhold
15% of a foreign seller's amount realized on the sale and send it to the IRS
Questions with Answers
An estate in reversion describes
the interest of a landlord under a lease
the interest of the buyer under a contract for deed
the interest of the trustee under a deed of trust
the interest of a lessee under a lease - ✔✔the interest of a landlord under a lease
The phrase "of indefinite duration" is most commonly used when defining what type of estate?
Fee Simple
Estate at Sufference
Less-than-freehold
For years - ✔✔Estate at Sufference
Special assessments differ from real property taxes in that
a special assessment is levied to pay for a specific improvement
a special assessment is levied against only those properties that benefit from the improvement
a special assessment is a one-time tax levied only when a property is benefited by a public
improvement
all of the above - ✔✔all of the above
In a 1031 exchange
a party to the exchange can deduct a loss on the exchange
the exchange property must be held for income, investment, or use in trade or business
each party must include "boot" in the trade as well as like property of equal value and equity
,receipt of boot will eliminate the tax liability of the exchanger of the property with the greatest
value - ✔✔The exchange property must indeed be held for income, investment, or use in a
trade or business. Personal-use properties do not qualify for a 1031 exchange.
Deed restrictions are
specific liens.
encumbrances.
general liens.
none of the above. - ✔✔none of the above.
The Federal Housing Administration (FHA)
makes loans directly to qualified homebuyers.
buys mortgages from private lenders in the secondary market.
guarantees loans made by private lenders.
insures loans made by private lenders. - ✔✔insures loans made by private lenders.
A real estate licensee farming an area tells homeowners that a minority group is moving in and,
as a result, there will be a decline in market value for the neighborhood. This conduct is an
example of the illegal practice of
discriminatory misrepresentation
steering
redlining
blockbusting - ✔✔blockbusting
The market data approach is used by an appraiser to determine the
building value less depreciation of the land
estimated cost of replacement
rate of anticipated appreciation
, value of vacant land - ✔✔value of vacant land
The Real Estate Commissioner is empowered to
impose a fine up to $25,000 if it is in the public interest to impose a fine rather than suspend or
revoke a license
impose a jail sentence for licensees found guilty of conversion
force property sellers to comply with the demands of property buyers during contract
negotiations.
enforce Real Estate Law by investigating and disciplining licensees who violate provisions of the
law. - ✔✔enforce Real Estate Law by investigating and disciplining licensees who violate
provisions of the law.
Involuntary alienation occurs when
a property owner is forced to sell to a resident alien under Fair Housing Laws
an interest in property is transferred against the will of an owner or without affirmative action
by the owner through operation of law, natural processes, or adverse possession
a broker's license is suspended by the Real Estate Commissioner because of alienation of the
complaining client
a property owner conveys title to a purchaser - ✔✔An interest in property is transferred against
the will of an owner or without affirmative action by the owner through operation of law,
natural processes, or adverse possession.
Under FIRPTA
escrow agents must notify the Department of Immigration if a purchaser of real property is a
foreign investor
escrow agents are required to withhold 15% of a foreign seller's amount realized on the sale
and send it to the IRS
escrow agents must notify the broker if a principal is a foreigner
a resident alien cannot buy or sell real property - ✔✔escrow agents are required to withhold
15% of a foreign seller's amount realized on the sale and send it to the IRS
