Real Estate Express CA Principles Practice Exam #1 Questions With Correct Answers

Thad and Pierre made an appointment to view a condo for lease advertised in the newspaper. Thad phoned the landlord and set up a viewing for two hours later in the day. The couple thought the condo was perfect and informed the landlord they wanted to start the application process to lease the condo. The landlord then explained the condo had just been leased. The next Sunday in the classifieds, the condo was again advertised for lease. A friend of the couple phoned the landlord, pretending to be interested in the property. When asked if it had been leased, the landlord replied "No". What is going on in this situation? - Answer It seems the landlord did not like the idea of leasing his condo to a same sex couple. This is not permissible. A landlord must live by federal and state fair housing laws. The Western Acres neighborhood is a highly desirable area in which homes very seldom go on the market. The Western Acres properties placed on the market sell very quickly and usually for or above asking price. Which principal of real estate applies to the homes in Western Acres? - Answer The Law of Supply and Demand 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. No, the broker must inform the seller of the buyer's check being held at the exact time the actual offer is presented. Brett lost his job last year. He has only been able to find temporary work and fell behind on his mortgage. His home is currently in foreclosure. He is confused as to what will happen and how the debts are paid. What is the order of payments in foreclosure? - Answer Cost of Sale; Special Assessment Taxes and General Taxes; the First Mortgage which is determined by the order of recording; and whatever is recoded next would be paid. (When a property has been foreclosed and sold by the lender, the debts associated with the foreclosure and the property must be paid in a particular order. First paid is the lender's cost of the sale, with special assessments and general taxes being paid next. Then the first mortgage is paid, with subsequently recorded mortgages or other debts being paid after that.) Is a broker allowed (permitted) to accept lender funds unless that broker owns the loan? Which requirement under the California Business and Professions Code addresses the question? - Answer No, it is not permissible for a broker to accept those funds. The requirement is outlined in Article 5. (Article 5 of the CA Business and Professions Code addresses brokers accepting funds from lenders. Lenders paying brokers when the broker does not own the loan is not permitted.) Although 16-year-old Tameka's goal is to be a licensed real estate salesperson in the State of California, she is currently living in Canada. Her long-term goal is to be a successful salesperson, manager, and to own a brokerage. She has been studying the Real Estate Principles Course for next week's exam. However, if she passes, she cannot apply for her 4 year salesperson's license. Why? - Answer Tameka cannot apply for a 4-year salesperson because she has not completed three college-level real estate courses. Tameka is only sixteen and a licensee must be eighteen years old. What is the major difference between an Estate for Years and an Estate from Period to Period? - Answer The major difference is: in an Estate from Period to Period, the tenant must give notice to vacate whereas in an Estate for Years, there is no need to give any notice. 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. (Lessees are not required to sign leases, so the lease is valid with only the landlord's signature.) A developer wants to build a sprawling two-story office complex. The developer's and architect's vision is something low, modern, and new. They are planning the complex in an urban area of town, replacing ten blocks of old high-rise buildings. Unfortunately, the zoning commission's vision does not coincide with either the developer's or the architect's. Which type of zoning regulation applies? - Answer Directive Zoning (Directive zoning encourages zoning as a planning tool to use land for its highest and best use.) Ted and Lisa are selling their home and have signed a listing agreement. Client or customer? Steven visits Ted and Lisa's open house, and he is interested in purchasing their home. What happens next? Is Steven a client or customer? - Answer Ted and Lisa are clients, and Steven is a customer. The listing agent must disclose to Steven that he/she represents Ted and Lisa and explain customer relationships. (Once a listing contract is signed, the seller becomes a client. With no contract, the buyer is a customer. Agency relationship disclosure requirements state that the listing agent must disclose to the customer his or her agency relationship with Ted and Lisa.) Calvin is buying his first home. He has been saving and saving for years. The home he is buying has a price of $300,000 and Calvin has a down payment of $75,000. Calvin's loan is considered: - Answer Low Risk 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? - Answer Lillian is the grantee and Julia is the grantor. Julia is the grantee and Anne Marie is the grantor.