California Real Estate Exam Prep
Questions And Answers With Verified
Solutions Already Passed (GRADED A+)
According to the Sherman Anti-Trust Act, if a real estate agency
instructed all of the salespersons and associate brokers that they were to set their
commissions at 3%, and they all agree to do so, this would be - ANSWER✔✔Not
a violation of the Sherman Anti-Trust Act
In order to have a valid agency relationship, the commission agreement must be -
ANSWER✔✔In writing
If you are referring to "the principle" in real estate, you are referring to -
ANSWER✔✔The part of the monthly payment that reduces the remaining balance
of a mortgage
In California, the knowledge and consent of both parties (the buyer and the seller)
must be obtained prior to the sale in order for the broker or agent to -
ANSWER✔✔Collect a commission from both parties
"A pamphlet provided by the EPA entitled Protect Your Family From Lead In
Your Home is to be given to tenants" would be a false statement regarding the -
ANSWER✔✔Residential Lead-Based Paint Hazard Reduction Act
Assessment bonds are used by the county to pay for what in a subdivision? -
ANSWER✔✔Street lights, curbs, sewers, and other needs
If a contract was valid upon its creation but has subsequently passed the statute of
limitations, the contract is now considered - ANSWER✔✔Unenforceable
,Under what type of lease does the tenant pay a fixed rental amount and the
landlord pays all of the operating expenses for the premises? - ANSWER✔✔Gross
lease
After reconciliation of a trust fund, it is found to have a greater balance than it
should have. This is called a - ANSWER✔✔Trust fund overage
In the case of a cash sale, why would a seller wish to transfer an existing fire
insurance policy? - ANSWER✔✔Because they will not have to pay a short term
cancellation rate
If a person agrees to pay a certain sum for a service deed to be done on a property
while the other person simply agrees to do the service if their schedule permits for
it, this kind of contract would be called - ANSWER✔✔Unilateral
In California, if a broker from another state refers a prospect to a broker in
California, the commission may - ANSWER✔✔Be split with the out-of-state
broker if desired
Fees that are paid by the individual owners of condos or planned unit
developments that are used to maintain the property and common areas are known
as - ANSWER✔✔Common area assessments
If you are given a formal written notice that a default has occurred, this is called -
ANSWER✔✔A notice of default
Water rights adopted based on riparian rights are generally in states -
ANSWER✔✔With ample supply of water
,This is a law requiring lenders and other creditors to make credit equally available
without discrimination based on race, color, religion, national origin, age, sex,
marital status, or receipt of income from public assistance programs -
ANSWER✔✔ECOA
If a mortgage has an adjustable rate but has limitations on how much the mortgage
rate may adjust over a six-month period, an annual period, and over the life of the
loan, this would be called - ANSWER✔✔A cap
Henry is the seller of his home, which was built in 1978. What booklet is Henry
required to give a potential buyer? - ANSWER✔✔Lead Paint Information
Which party is most likely to sue for specific performance in regards to the
purchase of real estate? - ANSWER✔✔The buyer
A vendor-vendee is a term that best describes the relationship between -
ANSWER✔✔Purchase-and-sales
A mortgage that can be taken over by the buyer when a home is sold, assuming the
buyer qualifies, is called a(n) - ANSWER✔✔Assumable mortgage
Under which law is it not permissible for a broker to only sell a property under the
condition that the broker obtains the listing for future sales? -
ANSWER✔✔Sherman Act
The best definition of an appraiser is - ANSWER✔✔An individual qualified by
education and experience to estimate the value of real and personal property
, A remainder is when - ANSWER✔✔There is a residue of the estate
If a property is partially destroyed from fire, the type of insurance that would likely
cover the damages is called - ANSWER✔✔Hazard insurance
Which of these conditions creates a "seller's market"? - ANSWER✔✔The sudden
influx of people to an area
This is a loosely used term generally taken to mean a borrower has completed a
loan application and provided debt, income, and savings documentation which an
underwriter has reviewed and approved - ANSWER✔✔Pre-Approved
If a person dies that owns this type of estate, the ownership of that person
automatically terminates - ANSWER✔✔A life estate
A situation in which an individual or organization is involved in several potentially
competing interests, creating a risk that one interest might unduly influence
another interest, is known as - ANSWER✔✔A conflict of interest
In California, one way to terminate an appurtenant easement a person could -
ANSWER✔✔Issue a decree in a quiet title action against the easement holder in
favor of the servient tenement
In California, as tenants-in-common, if one of the tenants obligates the other co-
tenants for a lease of the whole property without their consent, the lease would
legally be considered - ANSWER✔✔Invalid
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