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REAL ESTATE PRACTICE EXAM 2
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REAL ESTATE PRACTICE EXAM 2
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REAL ESTATEPRACTICE
EXAM 2
A person designated in a written power-of-attorney, to legally act for another in his stead
is typically called a(n):
A fiduciary.
B principal.
C attorney-in-fact.
D agent. - Answers -C. Any person may give another the authority to act on his or her
behalf. The legal document that does this is called a power of attorney. The person
holding the power of attorney is an attorney-in-fact.
A broker who is employed by the seller is liable to the buyer if:
A. he acts under a power of attorney for seller.
B. he acts in excess of the terms of his contract.
C. the offer is accepted but the contract is not performed.
D. the listing agreement has no termination date. - Answers -B. A broker's contract
ordinarily makes him the agent of the seller. If he performs an act which his contract
does not authorize him to do, he is the agent of the other party, the buyer.
In describing an agency contract, which is most nearly correct?
A. Most multiple listings are exclusive listings
B. An open listing without a termination date is unenforceable
C. Often multiple listings are net listings
D. An exclusive agency need not contain a termination date - Answers -A. Choice (a) is
the most nearly correct answer because most multiple listing groups require exclusive
right to sell listings, which is a type of exclusive listing.
An agreement to sell community property, signed by the husband alone, is:
A. void.
,B. voidable.
C. valid.
D. legal. - Answers -B. Both husband and wife must sign any transfer or encumbrance
of community property. CC Section 1102(a).
You agree to lease a property for 10 years for $12,000 total rent, at $100 per month.
You pay the first and last months' rent of $200. Which of the following terms would be
inappropriate in the lease?
A. Condemnation conditions
B. Compliance with the federal laws
C. Third party liabilities
D. Escalator clause geared to the cost of living - Answers -D. This would be a straight
lease, which has no need for an escalator clause. The escalator clause would be found
in a graduated lease.
If a lease is to be recorded, it must be acknowledged before a proper official by the:
A. county recorder.
B. notary public.
C. lessee.
D. lessor. - Answers -D. The lessor (landlord)owns the property and signs the lease to
give possession and use to the lessee (tenant). Leases for longer than one year (1 year
plus 1 day) must be in writing and must be signed by the lessor, but not necessarily by
the lessee.
A solemn declaration by a person whose religious beliefs forbid the taking of an oath is:
A. an affidavit.
B. an acknowledgment.
C. an affirmation.
D. none of the above - Answers -C. An affirmation is a declaration as to the truth of a
statement, and is used in lieu of an oath by a person who objects for personal or
religious reasons.
An affirmed statement sworn to is:
A. an affidavit.
B. an acknowledgment.
C. an affirmation.
D. delivered. - Answers -A. An affidavit is a sworn statement written down and made
under oath before a notary public or other official authorized by law to administer an
oath. Its purpose is to help establish or prove a fact, and it is a complete instrument
within itself.
When a lease is assigned, the assignee becomes a(n):
A. tenant.
B. lessor.
C. landlord.
, D. assignor. - Answers -A. When a lease is assigned, the primary liability shifts to the
assignee and he becomes a tenant. When a leased property is sublet, the primary
liability remains with the original lessee and the person to whom the property is sublet
becomes the sublessee.
Which of the following would identify a rider?
A. People
B. Amendment
C.Encroachment
D.Donee - Answers -B. A rider is an addition or an amendment to an existing document.
Which of the following is not legally required of a lease?
A. The legal expression "to let and demise"
B. Signature of lessor
C Description of property
D Term of lease - Answers -A. To let and demise is a legal term but not legally required
in a lease.
Which of the following is correct?
A. Maximum lease on city property is 51 years
B. Maximum lease on agriculture property is 99 years
C. Maximum lease on non-agriculture is 51 years
D. None of the above - Answers -D. Just the opposite: Agriculture-51, city and non-
agriculture-99.
A lease to a lessee is comparable to that of:
A. a deed of trust to a trustee.
B. an affiant to a deponent.
C. a land contract to the vendee.
D. a mortgage to a mortgagee. - Answers -C. A lease gives the lessee the right of
possession and use of the property. Under a land contract the buyer also receives use
and possession together with an additional right of future title.
Which term or terms would most completely commit the signers?
A. Individually
B. Jointly
C. Severally
D. Jointly and severally - Answers -D. Jointly as a group and severally as individuals.
A lessor and lessee agree to the terms and the lessor draws up a 5-year lease, signs it,
and mails it to the lessee. The lessee does not sign it, but moves in and pays 2 months'
rent. After 2 months, the lessee decides to move out and informs the lessor. Which of
the following is true?
A. There is a valid lease as only the lessor has to sign
B. There is a valid lease as lessee had moved in and paid 2 months' rent
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