Real Estate Express Practice Exam 1 Questions With Correct Answers

Which of the following is exempt from the Natural Hazards Disclosure? - Answer Karen and Jay need a larger home. They have two large dogs and a baby on the way. One day in the real estate section, they see their dream home. The couple view the home that very day, make an offer and it's accepted. There's only one problem: They haven't even put their home on the market. Which type of loan gives Karen and Jay their best option of paying two mortgages until their current home sells? - Answer A bridge loan Which of the following statements referring to general taxes is true? - Answer - General taxes are Ad Valorem taxes. - General taxes are used for the general operation of the governmental agency authorized to impose the taxes. - Real property tax (general taxes) are based on the assessed valuation of the property. - All of the Above Drew is leasing his apartment from Reggie. The lease is for one year and they have agreed on all areas of the contract. The lease is in written form, and Reggie is the only party that has signed. Without Drew's signature, is the lease now invalid? - Answer No, the lessee is not required to sign, only the lessor. The lessee's occupation of the property is proof the lease agreement was accepted. When an appraiser assumes that no one is being forced to sell at a reduced price because of an impending divorce or similar situation; and that both buyer and seller are well-informed customers, he is more than likely hired to determine: - Answer Market Value Adeeb has listed his condo with Maria's broker and she is his listing agent. The listing agreement is signed and the day to begin showing his property is nearing. Adeeb decides the day before the open house to raise his asking price by $20,000. Maria disagrees with the decision but goes along with Adeeb's wishes. How must Maria take care of this contractual change in price? Maria must change the listing price on a price change or extension form. Maria may make the change on the original contract due to the fact the condo has not been professionally shown by licensees. The listing price change does not need to be changed on the contract. The price that will be paid for the condo does not have to be the listing price; therefore, it is just a guide, not set in stone. None of the Above. - Answer Maria must change the listing price on a price change or extension form. In early common law, transfers of land were only made when: - The transfer of land from husband to wife, upon the husband's death. - The transfer of land from father to child, upon the father's death. - The transfer of land from father to son, upon the father's death. - Both A and B - Answer The transfer of land from father to son, upon the father's death. Which of the following is not a requirement for an FHA loan? - Answer Which of the following is not a requirement for an FHA loan? - Answer Janice has given her broker an earnest money deposit check with written instructions to hold the check until the seller has accepted her offer. Her broker follows instructions and informs the seller, through a telephone conversation with the seller's agent after the initial offer was presented, the buyer's check is being held awaiting offer acceptance. Did Janice's broker handle this situation correctly? - Answer -No, the broker must inform the seller in writing the buyer's check is being held until acceptance of the offer. - Yes, the broker informed the seller of the stipulation on the negotiation of the check until offer acceptance. - No, the broker must inform the seller of the buyer's check being held at the exact time the actual offer is presented. - Both A and C This step of the general plan, sometimes known as the master plan, should encompass all aspects of the projected growth, including the social, economic, and physical features. Due to this step, while considered long-range, the plan must allow for short-range flexibility. Which step is described? - Resource Analysis - Plan Implementation - Formulation of Community Goals - Adaptation of Zoning Ordinances - Answer Formulation of Community Goals Which of the following parties are not exempt from the real estate licensing requirements in California? - Cemetery Authorities - Licensed Personal Property Brokers - Off-Site Property Managers - Short-Term Vacation Rental Agents - Answer Off-Site Property Managers Bob leased an apartment for three years from the Steiners. He was never late on his rent in those three years, kept the apartment immaculate, and never caused a moment of trouble. He has recently purchased his first home and moved out of the apartment. As expected, Bob gave the Steiners sixty days' notice he would be moving and left the apartment in perfect condition. It has been 45 days since he moved out and he's been watching for his security deposit refund to purchase a new sofa. When should he expect his security deposit refunded? - If there had been no damage or cleaning required, which seemed highly likely in Bob's case, the landlord should have refunded his security deposit within 21 days of Bob's vacating the property. - If there had been no damage or cleaning required, which seemed highly unlikely in Bob's case, the landlord should have refunded his security deposit within 30 days of Bob's vacating the property. - If there had been no damage or cleaning required, which seemed highly unlikely in Bob's case, the landlord should have refunded his security deposit within 14 days of Bob's vacating the property. - None of the Above. - Answer If there had been no damage or cleaning required, which seemed highly likely in Bob's case, the landlord should have refunded his security deposit within 21 days of Bob's vacating the property. Tamara and her children live in a subdivision with a tennis court and swimming pool. Her children are thrilled to be able to use these wonderful amenities. Who actually owns the tennis court and swimming pool? Tamara and her children reside in which type of common interest development? - The tennis court and swimming pool are owned by the investors in the subdivision development. It is a Planned Unit Development. - The tennis court and swimming pool are owned in common by all the property owners. It is a Planned Unit Development. - The tennis court and swimming pool are owned in common by all the property owners. It is a subdivision. - None of the Above. - Answer The tennis court and swimming pool are owned in common by all the property owners. It is a Planned Unit Development. Timothy has been hired by the estate of Tyler Wilbanks, who is recently deceased. Timothy has Power of Attorney and will be handling all the real estate affairs of the deceased estate. Which type of agent is Timothy? - Special Agent - Single Agent - Universal Agent - Agency Coupled with Interest - Answer Universal Agent Jack is leasing a home from Justin for a year. He has decided to lease until he gets a good feel for the area and knows where he wants to buy. In this relationship, who has the reversionary right and who has the possessory right ? - Jack has the possessory right and Justin the reversionary right. - Jack has the reversionary right and Justin the possessory right. - Jack and Justin both have the possessory right. - Jack and Justin both share the reversionary right. - Answer Jack has the possessory right and Justin the reversionary right. Lillian is buying Julia's home in Malibu. Julia, after selling her home to Lillian, is buying Anne Marie's condo in San Francisco. In these transactions, who is the grantor, and who is the grantee? - Lillian is the grantor and Julia is the grantee. Julia is the grantor and Anne Marie is the grantor. - Lillian is the grantee and Julia is the grantor. Julia is the grantee and Anne Marie is the grantor. - Lillian is the grantor and Julia is the grantee. Julia is the grantor and Anne Marie is the grantee. - None of the Above. - Answer Lillian is the grantee and Julia is the grantor. Julia is the grantee and Anne Marie is the grantor. Missy, a licensee, desperately wants to be appointed the next California Real Estate Commissioner. For the three years, she has held her California real estate license, she has been ranked in the top five in new home sales in her office. Missy has never had her license suspended or revoked, and prides herself on being ethical in every transaction and interaction. Does Missy have a chance? Yes, she has a chance to be appointed to the post of California Real Estate Commissioner. The only requirements are to hold a California real estate license and be actively involved in the profession. No, not at this point in her career. In order to be appointed to the post by the governor, she must have a minimum of five years' experience as a real estate broker. No, not at this point in her career. In order to be appointed to the post by the governor, she must have a minimum of ten years' experience as a real estate broker. No, not at this point in her career. In order to be elected to the office by her peers, she must have a minimum of five years' experience as a real estate broker. - Answer No, not at this point in her career. In order to be appointed to the post by the governor, she must have a minimum of five years' experience as a real estate broker.