REAL ESTATE EXAM PRACTICE QUESTIONS
00 - answer-00
A bank made a loan and charged a 4 point loan fee. Later the banker sold the
note at a 3 1/2 point discount and received a check for 69580. What was most
nearly the face amount of the loan? - answer-A) 72,100
B) 74500
C) 73000
D) 70000
3 and 1/2 point = 100-3.5= 96.5
69850 / .965= 72,103.63
Closest is 72,100
A)
A broker told a customer that if he purchased a lot "it was a gold mine" and that
it could be sold for four times what he paid for it by the end of two years. The
customer bought the lot but did not attempt to sell it for four years. at that time,
he discovered that the broker who had sold him the lot was now selling similar
lots for less than the original price of his lot. What course of action could be
taken against the broker? - answer-A) Nothing could be done, as the statute of
limitations has expired
B) The broker was only "puffing" a common practice in selling real estate and
could not be held liable to the buyer, how ever the broker could be disciplined by
the bureau of real estate
C) Nothing could be done about such oral statements, as the real estate market
is speculative and always involves some risks for the purchaser
D) Civil and disciplinary action could be taken against the broker
D)
A broker was to receive a 6 percent commission from the sale of a property. Her
salesperson was to receive 45 percent of the 6 percent commission. The sales
person received 8100. What was the selling price of the property? - answer-A)
300000
B) 435000
C) 135000
D) 40000
2.7% is salesperson's share (6% gross × 45% split)
2.7% × SP = $8,100
SP = $8,100 ÷ 0.027 = $300,000
A)
A buyer made an earnest money offer to purchase property and the broker
placed the funds in his trust account. After the sellers acceptance but prior to
opening of escrow, the buyer informs the broker that he has revoked his offer
and demands the return of the deposit. The broker not wanting to be involved in
the conflict with respect to the disposition of the deposit funds, deposited them
with the appropriate court. This would be an example of - answer-A) interpleader
B) equitable disposition
,C)surrender
D)assignment
Interpleader is a court proceeding by the stakeholder of property who claims no
proprietary interest in it, for the purpose of deciding who among claimants is
legally entitled to the property.
A)
A buyer of a piece of property fails to examine public records on the property.
The buyer is considered to have - answer-A) Actual notice
B) Assumed Notice
C) Conditional Notice
D) Constructive Notice
D)
A buyer purchased a single family dwelling in a subdivision using a land sales
contract that provided for monthly payments and prohibited prepayment. Two
years later the buyer decided to pay off the balance of the contract, but the
vendor refused to accept it. Which statement is correct? - answer-A) The buyer
can ignore the clause prohibiting prepayment and pay off the loan after 2 years
B) The buyer must abide by the terms of the land sales contract
C) The buyer can make equal monthly interest payments but can pay nothing on
the principal before the due date
D) The inclusion of this clause makes the contract void
Civil Code Section 2985.6 gives a buyer of residential property (up to four units)
the right to prepay all or any part of a land contract at any time after 12 months
following the sale
A)
A city has sold an assessment bond for the improvement of streets in a certain
area. Properties within that area are assessed - answer-A) in proportion to
services or benefits that the land would receive
B) by the number of lots in the subdivision
C) by the area
D) by the size of the lot
Assessments are made in accordance with the benefits to be derived by the
property owner
A)
A clause in a second trust deed that permits the first trust deed to be refinanced
without affecting its priority would be known as a - answer-A) Acceleration clause
B) Subordination clause
C) Lien Waiver
D) Alienation clause
B)
A comprehensive method of estimating a building cost including labor, material,
overhead and profit is considered in which method? - answer-A) All of these
B) Quantity Survey
C) Unit in place
,D) Comparative cubic or square food measurements
B)
A contract providing for the payment of commission to the broker regardless of
who sells the property, including the owner, is a - answer-A) exclusive agency
listing
B) net listing
C) open listing
D) exclusive authorization and right to sell listing
D)
A contract signed under duress would be - answer-A) Void
B) Unenforceable
C) Voidable
D) Illegal
C)
A deed and delivered, but not recorded, is - answer-A) Invalid as between the
parties
B) Valid as between the parties and invalid as to subsequent recorded interests
without notice
C) Valid as between the parties and valid as to subsequent recorded interests
D) Invalid as between the parties and valid as to third parties with constructive
notice
Recording a deed gives constructive notice to the world of the contents of the
deed. The recording laws were enacted to protect innocent third parties. In this
instance, the grantee did not record the deed; therefore, he or she cannot expect
the courts to protect the title against third parties or subsequent recorded
interests that have no knowledge of the document. The deed itself is valid
between the grantor and the grantee, but invalid as against an innocent
purchaser without notice.
B)
A deed to an unallocated easement is - answer-A) Invalid
B) Void
C) Void for lack of certainty
D) Valid
D)
A final, specific, and definite termination date is required by law on all
agreements between seller and real estate agent except a - answer-A) Written
authorization given by a property owner to a real estate agent wherein said
agent is given the right along with other brokers to secure a purchaser
B) Agreement in writing wherein it is provided that an agent appointed in an
exclusive capacity may retain as compensation for his services all sums received
over and above a net price to the owner
C) Written agreement between owner and agent giving the agent the right to
collect a commission if the property is sold by anyone during the term of his
agreement
, D) Written instrument giving one agent the right to sell property for a specified
time but reserving the right of the owner to sell the property himself without
paying a commission
The other three choices all describe exclusive listing agreements, which must
have a final and definite termination date, unlike open listings.
A)
A fire insurance policy began March 1, 20xx and cost 316.80 for 3 years of
coverage. The insured cancelled the policy as of November 16 of that year. What
is the amount of the unused policy? - answer-A)121
B) 74.80
C) 316.80
D) 242
D)
A fire insurance policy can be canceled by the insurance company - answer-A) At
any time without notice
B) If the company gives the insured notice within a reasonable time prior to
cancellation
C) Only after the company has given written notice and the insured has signed
an acceptance
D) Without notice if the buyer has had excessive losses
B)
A kiosk is a - answer-A) small open sided structure
B) popular garden ornament
C) method of home cooling
D) roof style
A)
A landlord and tenant mutually agree to terminate a lease. This is often referred
to as - answer-A) recission
b) surrender
C) release
d) abandonment
Surrender is a mutual agreement between the landlord and tenant to terminate
a lease. Rescission is a mutual agreement to release each other from any
contract before performance, under which the parties must restore each other to
their former positions.
B)
A landlord sued his tenant ins mall claims court because his tenant did not give
notice before leaving. The tenant said that he had told the landlord of plumbing
problems that the landlord did not repair. which statement is true? - answer-A)
The landlord would get money from the court because the tenant should have
repaired the plumbing and deducted it from his rent.
B) The landlord would not get money from the court because either party could
rescind the contract.
00 - answer-00
A bank made a loan and charged a 4 point loan fee. Later the banker sold the
note at a 3 1/2 point discount and received a check for 69580. What was most
nearly the face amount of the loan? - answer-A) 72,100
B) 74500
C) 73000
D) 70000
3 and 1/2 point = 100-3.5= 96.5
69850 / .965= 72,103.63
Closest is 72,100
A)
A broker told a customer that if he purchased a lot "it was a gold mine" and that
it could be sold for four times what he paid for it by the end of two years. The
customer bought the lot but did not attempt to sell it for four years. at that time,
he discovered that the broker who had sold him the lot was now selling similar
lots for less than the original price of his lot. What course of action could be
taken against the broker? - answer-A) Nothing could be done, as the statute of
limitations has expired
B) The broker was only "puffing" a common practice in selling real estate and
could not be held liable to the buyer, how ever the broker could be disciplined by
the bureau of real estate
C) Nothing could be done about such oral statements, as the real estate market
is speculative and always involves some risks for the purchaser
D) Civil and disciplinary action could be taken against the broker
D)
A broker was to receive a 6 percent commission from the sale of a property. Her
salesperson was to receive 45 percent of the 6 percent commission. The sales
person received 8100. What was the selling price of the property? - answer-A)
300000
B) 435000
C) 135000
D) 40000
2.7% is salesperson's share (6% gross × 45% split)
2.7% × SP = $8,100
SP = $8,100 ÷ 0.027 = $300,000
A)
A buyer made an earnest money offer to purchase property and the broker
placed the funds in his trust account. After the sellers acceptance but prior to
opening of escrow, the buyer informs the broker that he has revoked his offer
and demands the return of the deposit. The broker not wanting to be involved in
the conflict with respect to the disposition of the deposit funds, deposited them
with the appropriate court. This would be an example of - answer-A) interpleader
B) equitable disposition
,C)surrender
D)assignment
Interpleader is a court proceeding by the stakeholder of property who claims no
proprietary interest in it, for the purpose of deciding who among claimants is
legally entitled to the property.
A)
A buyer of a piece of property fails to examine public records on the property.
The buyer is considered to have - answer-A) Actual notice
B) Assumed Notice
C) Conditional Notice
D) Constructive Notice
D)
A buyer purchased a single family dwelling in a subdivision using a land sales
contract that provided for monthly payments and prohibited prepayment. Two
years later the buyer decided to pay off the balance of the contract, but the
vendor refused to accept it. Which statement is correct? - answer-A) The buyer
can ignore the clause prohibiting prepayment and pay off the loan after 2 years
B) The buyer must abide by the terms of the land sales contract
C) The buyer can make equal monthly interest payments but can pay nothing on
the principal before the due date
D) The inclusion of this clause makes the contract void
Civil Code Section 2985.6 gives a buyer of residential property (up to four units)
the right to prepay all or any part of a land contract at any time after 12 months
following the sale
A)
A city has sold an assessment bond for the improvement of streets in a certain
area. Properties within that area are assessed - answer-A) in proportion to
services or benefits that the land would receive
B) by the number of lots in the subdivision
C) by the area
D) by the size of the lot
Assessments are made in accordance with the benefits to be derived by the
property owner
A)
A clause in a second trust deed that permits the first trust deed to be refinanced
without affecting its priority would be known as a - answer-A) Acceleration clause
B) Subordination clause
C) Lien Waiver
D) Alienation clause
B)
A comprehensive method of estimating a building cost including labor, material,
overhead and profit is considered in which method? - answer-A) All of these
B) Quantity Survey
C) Unit in place
,D) Comparative cubic or square food measurements
B)
A contract providing for the payment of commission to the broker regardless of
who sells the property, including the owner, is a - answer-A) exclusive agency
listing
B) net listing
C) open listing
D) exclusive authorization and right to sell listing
D)
A contract signed under duress would be - answer-A) Void
B) Unenforceable
C) Voidable
D) Illegal
C)
A deed and delivered, but not recorded, is - answer-A) Invalid as between the
parties
B) Valid as between the parties and invalid as to subsequent recorded interests
without notice
C) Valid as between the parties and valid as to subsequent recorded interests
D) Invalid as between the parties and valid as to third parties with constructive
notice
Recording a deed gives constructive notice to the world of the contents of the
deed. The recording laws were enacted to protect innocent third parties. In this
instance, the grantee did not record the deed; therefore, he or she cannot expect
the courts to protect the title against third parties or subsequent recorded
interests that have no knowledge of the document. The deed itself is valid
between the grantor and the grantee, but invalid as against an innocent
purchaser without notice.
B)
A deed to an unallocated easement is - answer-A) Invalid
B) Void
C) Void for lack of certainty
D) Valid
D)
A final, specific, and definite termination date is required by law on all
agreements between seller and real estate agent except a - answer-A) Written
authorization given by a property owner to a real estate agent wherein said
agent is given the right along with other brokers to secure a purchaser
B) Agreement in writing wherein it is provided that an agent appointed in an
exclusive capacity may retain as compensation for his services all sums received
over and above a net price to the owner
C) Written agreement between owner and agent giving the agent the right to
collect a commission if the property is sold by anyone during the term of his
agreement
, D) Written instrument giving one agent the right to sell property for a specified
time but reserving the right of the owner to sell the property himself without
paying a commission
The other three choices all describe exclusive listing agreements, which must
have a final and definite termination date, unlike open listings.
A)
A fire insurance policy began March 1, 20xx and cost 316.80 for 3 years of
coverage. The insured cancelled the policy as of November 16 of that year. What
is the amount of the unused policy? - answer-A)121
B) 74.80
C) 316.80
D) 242
D)
A fire insurance policy can be canceled by the insurance company - answer-A) At
any time without notice
B) If the company gives the insured notice within a reasonable time prior to
cancellation
C) Only after the company has given written notice and the insured has signed
an acceptance
D) Without notice if the buyer has had excessive losses
B)
A kiosk is a - answer-A) small open sided structure
B) popular garden ornament
C) method of home cooling
D) roof style
A)
A landlord and tenant mutually agree to terminate a lease. This is often referred
to as - answer-A) recission
b) surrender
C) release
d) abandonment
Surrender is a mutual agreement between the landlord and tenant to terminate
a lease. Rescission is a mutual agreement to release each other from any
contract before performance, under which the parties must restore each other to
their former positions.
B)
A landlord sued his tenant ins mall claims court because his tenant did not give
notice before leaving. The tenant said that he had told the landlord of plumbing
problems that the landlord did not repair. which statement is true? - answer-A)
The landlord would get money from the court because the tenant should have
repaired the plumbing and deducted it from his rent.
B) The landlord would not get money from the court because either party could
rescind the contract.
