CA 45 HR Real Estate Principals Course Exam –
Questions With Perfect Solutions
Builders weren't allowed to develop new properties in city Ville for six
months. This is likely because the city had enacted a_______. Right Ans -
Moratorium
Which type of analysis is a broad estimate of price in case the lender must
take over the property and sell it to an investor on the market? Right Ans -
Broker price opinion BPO
Which of the following is part of an electrical heating system? Right Ans -
Resistor
Nadine is a busy California licensee. She received an offer for one of her
listings, conveyed to her by her buyers representative. What's true Nadine's
obligation to others in this situation? Right Ans - She owes her client the
duty of upmost skill and care, and other principles in the transaction such as a
buyer making the offer on her listing the duty of reasonable skill and care.
What is it called when one party to a contract transfers the contractual rights
and obligations to another but remains a liable for the contract terms?
Right Ans - assignment
In which of these situations did the licensee breach the fiduciary duty of
loyalty? Right Ans - Margo tells her seller client Troy that his property is
worth less than it really is so he will get a quick sale.
If there is some kind of defect on a property title, what effect does this level
transferability have on the properties value? Right Ans - The value Falls
Can police power ever be used in a way that restricts citizens freedom?
Right Ans - Yes, if it's for the public good.
Which mortgage clause requires a lender to discharge the mortgage lien once
the borrower has paid in full? Right Ans - Defeasance
, What type of value is of interest to taxing authorities? Right Ans - Assessed
value
How do you calculate the area for a square room? Right Ans - Multiply the
length of two sides together
Three of these statements about interpreting contracts are true, and one is
not. Which statement is false? Right Ans - A handwritten insertion can be
canceled out by typing over it.
In the eyes of a lender, when financing a residence, what advantage does an
investor have over owner-occupied borrowers? Right Ans - Investors can
use rental income to qualify.
What are the three C's of credit? Right Ans - Character, capital, capacity
What is it called when the borrower and lender work together to restructure
the terms of a home loan? Right Ans - Loan modification
How are creditors are lienholders paid during a foreclosure process? Right
Ans - The property is sold out auction and lienholders are paid from the
proceeds of the sale
Shelly's flower business is blooming and it's time for her business to grow. She
plans to take out a business loan to open up two more shops on the north side
of town. Which lending institution would she most likely go to for the loan?
Right Ans - A commercial bank
Which of the following is true about ownership or title to a property? Right
Ans - Constructive notice to the public of real property ownership occurs
when the deed is recorded.
Which type of subdivision is defined as parcels of land that purchasers own
individually, with no commonly owned areas? Right Ans - Standard
subdivision
Which of the following is a mortgage where the consumer cannot later claim
that the lender did not comply with the ability to repay requirements?
Right Ans - Qualified mortgage with a safe harbor status
Questions With Perfect Solutions
Builders weren't allowed to develop new properties in city Ville for six
months. This is likely because the city had enacted a_______. Right Ans -
Moratorium
Which type of analysis is a broad estimate of price in case the lender must
take over the property and sell it to an investor on the market? Right Ans -
Broker price opinion BPO
Which of the following is part of an electrical heating system? Right Ans -
Resistor
Nadine is a busy California licensee. She received an offer for one of her
listings, conveyed to her by her buyers representative. What's true Nadine's
obligation to others in this situation? Right Ans - She owes her client the
duty of upmost skill and care, and other principles in the transaction such as a
buyer making the offer on her listing the duty of reasonable skill and care.
What is it called when one party to a contract transfers the contractual rights
and obligations to another but remains a liable for the contract terms?
Right Ans - assignment
In which of these situations did the licensee breach the fiduciary duty of
loyalty? Right Ans - Margo tells her seller client Troy that his property is
worth less than it really is so he will get a quick sale.
If there is some kind of defect on a property title, what effect does this level
transferability have on the properties value? Right Ans - The value Falls
Can police power ever be used in a way that restricts citizens freedom?
Right Ans - Yes, if it's for the public good.
Which mortgage clause requires a lender to discharge the mortgage lien once
the borrower has paid in full? Right Ans - Defeasance
, What type of value is of interest to taxing authorities? Right Ans - Assessed
value
How do you calculate the area for a square room? Right Ans - Multiply the
length of two sides together
Three of these statements about interpreting contracts are true, and one is
not. Which statement is false? Right Ans - A handwritten insertion can be
canceled out by typing over it.
In the eyes of a lender, when financing a residence, what advantage does an
investor have over owner-occupied borrowers? Right Ans - Investors can
use rental income to qualify.
What are the three C's of credit? Right Ans - Character, capital, capacity
What is it called when the borrower and lender work together to restructure
the terms of a home loan? Right Ans - Loan modification
How are creditors are lienholders paid during a foreclosure process? Right
Ans - The property is sold out auction and lienholders are paid from the
proceeds of the sale
Shelly's flower business is blooming and it's time for her business to grow. She
plans to take out a business loan to open up two more shops on the north side
of town. Which lending institution would she most likely go to for the loan?
Right Ans - A commercial bank
Which of the following is true about ownership or title to a property? Right
Ans - Constructive notice to the public of real property ownership occurs
when the deed is recorded.
Which type of subdivision is defined as parcels of land that purchasers own
individually, with no commonly owned areas? Right Ans - Standard
subdivision
Which of the following is a mortgage where the consumer cannot later claim
that the lender did not comply with the ability to repay requirements?
Right Ans - Qualified mortgage with a safe harbor status
