EMILLYCHARLOTTE 2024/2025 ACADEMIC YAER
©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISH SEPTEMBER 2024
Real Estate Principles Final Exam Colibri
Questions and Answers | 100% Pass
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? -
Answer✔✔-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? - Answer✔✔-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,
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FIRST PUBLISH SEPTEMBER 2024
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 - Answer✔✔-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? - Answer✔✔-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? - Answer✔✔-Mobile Home Parks
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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: - Answer✔✔-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
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©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISH SEPTEMBER 2024
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 - Answer✔✔-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: - Answer✔✔-They will make payments
of interest only, with the principal due on the loan due date in 30 years.
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