Real Estate Principles Final Exam Colibri
2025 With 100% Correct Answers
Long Beach salesperson Eric Janey is providing sellers Julie and Zach Roberts with the necessary
disclosures they must be given upon the sale of real property. Which of the following is NOT a
disclosure that is given upon the sale of real property? - correct answers ✔✔Mold Disclosure
Required
Lead-based Paint Disclosure Required
Natural Hazards Disclosure Required
Radon Detection Test Disclosure - NOT REQUIRED IN CA
Escrow cannot be terminated in which of the following ways? - correct answers ✔✔Death of
one of the principals
ESCROW CAN BE TERMINATED BY
The completion of escrow
Mutual agreement
By a court or interpleader action
Kathy Bates has just moved into a condominium complex of 60 units. The complex has a
swimming pool, and a management company takes care of the upkeep of the outside of the
property. The monthly cost for pool maintenance, grass cutting, tree trimming, private street
maintenance, and the newly-updated clubhouse is currently $400.00 a month. Each year, the
cost of such services increases, as do the costs for necessary repairs as the buildings get older.
This year, new roofs are in order for all of the buildings. The condominium association, which is
made up of the owners of the property, decides that, in order to cover the increase in costs, and
to replace the roofs on the property, they must pass a - correct answers ✔✔Special Assessment
,NOT
Ad valorem tax (insert why)
General real estate tax (insert why)
Pauline Chasse has just signed a lease agreement with landlord, Wayne Godbrey to rent a house
he owns in Delano. The lease states definite beginning (January 1, 2016) and ending (October
30, 2016) dates, and sets forth the rent amount and due dates and all additional property and
personal information required in such a lease. Wayne hands a copy to Pauline, but she notices
that he has not signed it. When she comments about this to him, he tells her that signatures are
not necessary since the lease is for less than a year. Which of the following is true of this
situation? - correct answers ✔✔Leases of less than 1 year are not required to be in writing.
However, if a lease is in writing, then it must be signed by the lessor (in this case, Wayne)
Which of the following is NOT considered one of the basic types of Common Interest
Developments? - correct answers ✔✔Mobile Home Parks
The below ARE considered Common Interest Developments
Condominiums
Cooperatives
Planned developments
Under Article 7 on "hard money loans" (cash) of $30,000.00 and over for first trust deed loans,
and $20,000.00 and over for junior deeds of trust, except where the new usury laws apply, the
loan broker's commission maximum is: - correct answers ✔✔The broker MAY CHARGE as much
commission as the borrower will agree to pay.
The regulations also require that the broker provides to BOTH the buyer and seller, on first trust
deed loans UNDER $30,000.00, and on junior trust deed loans UNDER $20,000.00, copies of the
appraisal report.Loans on owner-occupied homes that are negotiated by a broker for a term of 6
or more years may not have a balloon payment. In any situation that involves a balloon
, payment, the SELLER is required to notify the BUYER between 60 and 150 days BEFORE the
payment is due.If the home is NOT occupied by the owner, then the loans are exempt from
balloon payments, IF the loan term is less than 3 years.Threshold Reporting is the requirement
to report annual and quarterly loan activities (review of trust fund) to the California BRE, IF,
within the past 12 months, a broker has negotiated any combination of 10 or more loans to a
subdivision OR a total of more than $1,000,000.00 in loans. Regulations for "big lending," as this
is known, include the requirement that advertising must be reviewed by the CalBRE. The intent
of the threshold reporting regulations is to protect the public by overseeing the loan activity of
these "big lenders," who are using their real estate licenses to take on such activities.
In 2013, Jack and Shirley Wright moved from Riverside, in Southern California, up to Santa Clara,
in Northern California, when Jack's company opened a new branch office there. They decided to
rent for a while so they could get to know the area before buying a home. Three weeks ago,
they finally found and put a contract on a lovely 3-bedroom ranch, and the sellers accepted the
first offer. They took that as a good sign, but now it's only 5 days until the close of escrow and
they still haven't signed the escrow papers yet. In fact, they aren't due to sign the escrow papers
until the day before the actual close of escrow. The Wrights are under the impression that
something is wrong, because when they sold their last home, the escrow instructions had to be
signed by both parties to the transaction immediately after they all signed the purchase
agreement--about 60 days ahead of the actual close of escrow date. Which of th - correct
answers ✔✔The escrow practices in Southern California differ from those in Northern
California. In Southern California, the escrow instructions are signed by the buyer and seller
shortly after they've signed the purchase agreement, just after the start of escrow, which is
about 60 days prior to the actual close of escrow. In Northern California, the escrow instructions
are usually not signed until one or two days just before the close of escrow.
Ollie and Molly Overton have just taken out a 30-year straight term loan on their new "starter
home" in Bellflower. This means that: - correct answers ✔✔They will make payments of interest
only, with the principal due on the loan due date in 30 years.
Co-authors and sisters, Mary and Perry Corrigan, have just written their fourth bestseller, even
though Mary lives on the East Coast, while Perry resides in Calistoga. When the home next door
to Perry is sold, Perry buys it and then gift deeds it to her sister so that they can live side-by-side
for the several months of the year they spend writing together. In this situation, what
2025 With 100% Correct Answers
Long Beach salesperson Eric Janey is providing sellers Julie and Zach Roberts with the necessary
disclosures they must be given upon the sale of real property. Which of the following is NOT a
disclosure that is given upon the sale of real property? - correct answers ✔✔Mold Disclosure
Required
Lead-based Paint Disclosure Required
Natural Hazards Disclosure Required
Radon Detection Test Disclosure - NOT REQUIRED IN CA
Escrow cannot be terminated in which of the following ways? - correct answers ✔✔Death of
one of the principals
ESCROW CAN BE TERMINATED BY
The completion of escrow
Mutual agreement
By a court or interpleader action
Kathy Bates has just moved into a condominium complex of 60 units. The complex has a
swimming pool, and a management company takes care of the upkeep of the outside of the
property. The monthly cost for pool maintenance, grass cutting, tree trimming, private street
maintenance, and the newly-updated clubhouse is currently $400.00 a month. Each year, the
cost of such services increases, as do the costs for necessary repairs as the buildings get older.
This year, new roofs are in order for all of the buildings. The condominium association, which is
made up of the owners of the property, decides that, in order to cover the increase in costs, and
to replace the roofs on the property, they must pass a - correct answers ✔✔Special Assessment
,NOT
Ad valorem tax (insert why)
General real estate tax (insert why)
Pauline Chasse has just signed a lease agreement with landlord, Wayne Godbrey to rent a house
he owns in Delano. The lease states definite beginning (January 1, 2016) and ending (October
30, 2016) dates, and sets forth the rent amount and due dates and all additional property and
personal information required in such a lease. Wayne hands a copy to Pauline, but she notices
that he has not signed it. When she comments about this to him, he tells her that signatures are
not necessary since the lease is for less than a year. Which of the following is true of this
situation? - correct answers ✔✔Leases of less than 1 year are not required to be in writing.
However, if a lease is in writing, then it must be signed by the lessor (in this case, Wayne)
Which of the following is NOT considered one of the basic types of Common Interest
Developments? - correct answers ✔✔Mobile Home Parks
The below ARE considered Common Interest Developments
Condominiums
Cooperatives
Planned developments
Under Article 7 on "hard money loans" (cash) of $30,000.00 and over for first trust deed loans,
and $20,000.00 and over for junior deeds of trust, except where the new usury laws apply, the
loan broker's commission maximum is: - correct answers ✔✔The broker MAY CHARGE as much
commission as the borrower will agree to pay.
The regulations also require that the broker provides to BOTH the buyer and seller, on first trust
deed loans UNDER $30,000.00, and on junior trust deed loans UNDER $20,000.00, copies of the
appraisal report.Loans on owner-occupied homes that are negotiated by a broker for a term of 6
or more years may not have a balloon payment. In any situation that involves a balloon
, payment, the SELLER is required to notify the BUYER between 60 and 150 days BEFORE the
payment is due.If the home is NOT occupied by the owner, then the loans are exempt from
balloon payments, IF the loan term is less than 3 years.Threshold Reporting is the requirement
to report annual and quarterly loan activities (review of trust fund) to the California BRE, IF,
within the past 12 months, a broker has negotiated any combination of 10 or more loans to a
subdivision OR a total of more than $1,000,000.00 in loans. Regulations for "big lending," as this
is known, include the requirement that advertising must be reviewed by the CalBRE. The intent
of the threshold reporting regulations is to protect the public by overseeing the loan activity of
these "big lenders," who are using their real estate licenses to take on such activities.
In 2013, Jack and Shirley Wright moved from Riverside, in Southern California, up to Santa Clara,
in Northern California, when Jack's company opened a new branch office there. They decided to
rent for a while so they could get to know the area before buying a home. Three weeks ago,
they finally found and put a contract on a lovely 3-bedroom ranch, and the sellers accepted the
first offer. They took that as a good sign, but now it's only 5 days until the close of escrow and
they still haven't signed the escrow papers yet. In fact, they aren't due to sign the escrow papers
until the day before the actual close of escrow. The Wrights are under the impression that
something is wrong, because when they sold their last home, the escrow instructions had to be
signed by both parties to the transaction immediately after they all signed the purchase
agreement--about 60 days ahead of the actual close of escrow date. Which of th - correct
answers ✔✔The escrow practices in Southern California differ from those in Northern
California. In Southern California, the escrow instructions are signed by the buyer and seller
shortly after they've signed the purchase agreement, just after the start of escrow, which is
about 60 days prior to the actual close of escrow. In Northern California, the escrow instructions
are usually not signed until one or two days just before the close of escrow.
Ollie and Molly Overton have just taken out a 30-year straight term loan on their new "starter
home" in Bellflower. This means that: - correct answers ✔✔They will make payments of interest
only, with the principal due on the loan due date in 30 years.
Co-authors and sisters, Mary and Perry Corrigan, have just written their fourth bestseller, even
though Mary lives on the East Coast, while Perry resides in Calistoga. When the home next door
to Perry is sold, Perry buys it and then gift deeds it to her sister so that they can live side-by-side
for the several months of the year they spend writing together. In this situation, what
