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more questions multiple choice, Exams of Virtual Reality

Multiple choce real estate california

Typology: Exams

2024/2025

Uploaded on 02/13/2025

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RESUMEN CALRE 1
Which is considered real property? Land.
Agent commission rates are: Negotiable between the principal and agent.
Usual method for commercial property valuation? Capitalization rate.
Which does NOT guarantee property seller owns ownership? Quitclaim deed.
1968 Fair Housing Act exempts: Rooms in owner-occupied residential units.
Real property is NOT which of the following? Movable by law.
Which is NOT a legal land description method? County assessor’s parcel number.
U.S. Government Survey uses which descriptors to identify property? Tiers, ranges, townships.
Public controls of real estate are a police power of the state, derived from: The U.S. Constitution.
Littoral rights pertain to the use of: Lake water.
Section number south of Section 33 in T4N, R3E Humboldt Base Line and Meridian is ? 4.
A monetary encumbrance on land is called: A lien.
A deed of trust filed at the county recorder’s office is an example of: A lien.
Ownership "bundle of rights" includes: all of the above. Possession, enjoyment, exclusion.
Mineral rights exclude: Oil (fungible property).
Ownership of personal property transfers with: Sales receipt.
A custom-made bookcase in a bookstore is personal property if: It is a trade fixture.
Covenants, conditions, and restrictions CC&Rs are: Private.
Example of personal property: Garden bench.
A single person who never married most commonly holds title in RE: In severalty.
Property boundaries along the Pacific Ocean are set by: The mean high tide line.
Lead-based paint for homes/condos built before 1978: required for both owner-occupied/ rental
An example of eminent domain for public use: A highway bypass.
A property owner with a lake entirely boundaries on their property has: Littoral rights.
One acre of land equals: 43,560 square feet.
Is a solar water heater a fixture? Depends on attachment method.
Administration of Subdivided Lands Act: California Department of Real Estate.
A couple buying a home before marriage cannot hold title as: Community property.
A seller executes a grant deed but does not record it. The transaction is: Legal. As is properly executed.
A life estate interest is in effect for the remainder of the: Life of a designated person.
Which is not a basic type of promissory note? A deed of trust.
Which financial term is never expressed as a percentage? Principal.
Which is NOT a negotiable instrument? U.S. savings bonds.
James pays the broker 1 point on a $250,000 loan. How much does he pay? $2,500.
When does Margaret acquire title with a land contract?
When the principal and interest are paid in full.
The Truth in Lending Act (TILA) requires disclosures to: Consumers only.
CalVet loans and land contracts have one thing in common:
Title transfers once loan principal and interest are paid.
Three type of lenders which is fictional. Scrooge McDuck is an example of A non-institutional lender.
A deed of trust is: A surety device.
MLOs in California may set their commissions:
According to the California Business and Professions Code.
Who can license mortgage loan brokers in California? All of the above (DBO, DRE, CFL).
Used in California to makes real property collateral for a promissory note ? A deed of trust.
Greatest title insurance coverage is with -type of policy: An ALTA policy.
Proposition 13 allows for: Tax reassessment of real property for third-party sales.
The four unities (time, title, interest, possession) apply to: Joint tenancy.
Who can act as an agent for escrow handling? A neutral third party.
Basis of prorating monies, rents or property taxes in escrow? 30 days regardless # calendar days
RESPA stands for: Real Estate Settlement Procedures Act.
Which is NOT a method of transferring real estate title? A handshake.
IndividualCalifornia taxpayers pay income taxes on monies received from: Rental property income.
RE commission for a property that is in probate is set by: Superior Court of California order.
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RESUMEN CALRE 1

  • Which is considered real property? Land.
  • Agent commission rates are: Negotiable between the principal and agent.
  • Usual method for commercial property valuation? Capitalization rate.
  • Which does NOT guarantee property seller owns ownership? Quitclaim deed.
  • 1968 Fair Housing Act exempts: Rooms in owner-occupied residential units.
  • Real property is NOT which of the following? Movable by law.
  • Which is NOT a legal land description method? County assessor’s parcel number.
  • U.S. Government Survey uses which descriptors to identify property? Tiers, ranges, townships.
  • Public controls of real estate are a police power of the state, derived from: The U.S. Constitution.
  • Littoral rights pertain to the use of: Lake water.
  • Section number south of Section 33 in T4N, R3E Humboldt Base Line and Meridian is? 4.
  • A monetary encumbrance on land is called: A lien.
  • A deed of trust filed at the county recorder’s office is an example of: A lien.
  • Ownership "bundle of rights" includes: all of the above. Possession, enjoyment, exclusion.
  • Mineral rights exclude: Oil (fungible property).
  • Ownership of personal property transfers with: Sales receipt.
  • A custom-made bookcase in a bookstore is personal property if: It is a trade fixture.
  • Covenants, conditions, and restrictions CC&Rs are: Private.
  • Example of personal property: Garden bench.
  • A single person who never married most commonly holds title in RE: In severalty.
  • Property boundaries along the Pacific Ocean are set by: The mean high tide line.
  • Lead-based paint for homes/condos built before 1978: required for both owner-occupied/ rental
  • An example of eminent domain for public use: A highway bypass.
  • A property owner with a lake entirely boundaries on their property has: Littoral rights.
  • One acre of land equals: 43,560 square feet.
  • Is a solar water heater a fixture? Depends on attachment method.
  • Administration of Subdivided Lands Act: California Department of Real Estate.
  • A couple buying a home before marriage cannot hold title as: Community property.
  • A seller executes a grant deed but does not record it. The transaction is: Legal. As is properly executed.
  • A life estate interest is in effect for the remainder of the: Life of a designated person.
  • Which is not a basic type of promissory note? A deed of trust.
  • Which financial term is never expressed as a percentage? Principal.
  • Which is NOT a negotiable instrument? U.S. savings bonds.
  • James pays the broker 1 point on a $250,000 loan. How much does he pay? $2,500.
  • When does Margaret acquire title with a land contract? When the principal and interest are paid in full.
  • The Truth in Lending Act (TILA) requires disclosures to: Consumers only.
  • CalVet loans and land contracts have one thing in common: Title transfers once loan principal and interest are paid.
  • Three type of lenders which is fictional. Scrooge McDuck is an example of A non-institutional lender.
  • A deed of trust is: A surety device.
  • MLOs in California may set their commissions: According to the California Business and Professions Code.
  • Who can license mortgage loan brokers in California? All of the above (DBO, DRE, CFL).
  • Used in California to makes real property collateral for a promissory note? A deed of trust.
  • Greatest title insurance coverage is with -type of policy: An ALTA policy.
  • Proposition 13 allows for: Tax reassessment of real property for third-party sales.
  • The four unities (time, title, interest, possession) apply to: Joint tenancy.
  • Who can act as an agent for escrow handling? A neutral third party.
  • Basis of prorating monies, rents or property taxes in escrow? 30 days regardless # calendar days
  • RESPA stands for: Real Estate Settlement Procedures Act.
  • Which is NOT a method of transferring real estate title? A handshake.
  • IndividualCalifornia taxpayers pay income taxes on monies received from: Rental property income.
  • RE commission for a property that is in probate is set by: Superior Court of California order.
  • Which of the following requires probate taxes and court costs including attorney’s fees? A holographic will
  • “Escheat” is the term that most closely relates to what process? The state taking assets if there is no will and no heirs
  • The underlying premise for all real estate property valuation is: Location.
  • The cost approach (replacement cost method) is most often for what purpose? Property insurance replacement
  • Real Estate Appraisers are licensed by the: California Bureau of Real Estate Appraisers (BREA).
  • The comparison approach (market data approach) is to value which of the following? A residential tract home for sale in order to secure a home loan
  • When do licensed real estate agents perform appraisals for home sellers? Never
  • Which of the following is NOT required in an appraisal report to comply with BREA guidelines? The compensation paid for the appraisal.
  • Commercial property is valued by: The gross rents it generates.
  • “A bird in the hand is worth two in the bush” is ssociated with which financial concept? The time value of money
  • Simple interest in dollars earned on an investment can be calculated using which formula? P * R = I
  • The Lending Act requires all consumer, home loan, and refinance loan interest rates be published as: Annual percentage rate (APR).
  • California’s usury statute restricts the interest rate on loans by non-exempt lenders to what annual rate? 10% Ten percent rate
  • A financial analysis of the future cash flows from an investment property can be found on: A pro forma cash flow report.
  • What does “simple” mean in the term “simple interest”? It does not take the time value of money into the equation.
  • Using the payback method, how long will it take for an individual to get their $1 million investment back if annual gross rents are $500,000? Two years
  • A “seller’s market” occurs when prices for real estate rise due to: An increasing demand for real estate purchase or rent.
  • Which loan-to-value (LTV) ratio would make a loan on an owner-occupied residential dwelling most attractive to conventional lenders? 0.8:
  • What should Jessica do if she has a $250,000 30-year loan at 4.25% and interest rates have dropped to 2.85%? Refinancing the principal balance with a 15-year fully amortized and reduce monthly payments.
  • The “4 C’s” of qualifying for a real estate loan include all of the following EXCEPT: Character
  • Which institutional lender has the greatest amount of money available for real estate-secured loans? Life insurance companies
  • Government-backed loans such as FHA, HUD, and VA: Insure and guarantee loans.
  • A “4-3-2-1 depth table” indicates the percentage of the property's value located in the front part of the parcel. This applies to: Lake-front property in Lake Tahoe
  • The mudsill is what part of conventional construction? C.The treated lumber or plate used to bolt the building to the foundation.
  • An option agreement requires a minimum of how much value (money) to bind the contract? A nickel
  • The transfer of real property must legally describe the property and parties involved? On paper
  • Can a married person transfer title to sole and separate real property without their partner’s consent? No
  • Licensed California real estate brokers may buy and sell promissory notes: With a special Department of Real Estate license endorsement.
  • The real estate listing agreement is: The personal property of the broker.
  • Dual agency agreements are: Legal if disclosed, elected, and confirmed by both parties.
  • Elements of a real estate contract include all of the following EXCEPT: Legal residence or citizenship in the United States.
  • May a non-emancipated minor own and enter into a contract to sell real estate? No; a non-emancipated minor may own real estate but cannot sell it.
  • Liquidated damages are limited to which of the following? 3% of the sale’s residential property contract price
  • Disclosure of affliction with AIDS or an AIDS-related death in the property May constitute prohibited discriminatory conduct.
  • Impound accounts for property insurance and taxes are often found in The lender’s accounts.
  • Broker trust accounts Must not hold more than $200 of the broker’s personal funds.
  • The obligation to prepare mandated disclosures lies with The seller and the seller’s agent.
  • The licensed broker of record has a legal duty to supervise The business activities of their licensed agents.
  • The real estate broker examination Has more questions than the salesperson exam.
  • The real estate broker and salesperson licenses require how many hours of continuing education for renewal? 45 hours every four years.
  • Unlicensed sales associates are allowed to do which of the following at an open house? Greet visitors.
  • Natural hazard disclosures may include Being in a flood zone.
  • Property managers for non-residential, transient, or resort properties are Exempt from California real estate licensing requirements.
  • Are real estate agents managing their own 1- to 4-unit residential property exempt from the 1968 Fair Housing Act? No.
  • Which of the following is true about California residential property managers? A California real estate license is never required.
  • Who must visually inspect a residential property before purchase? The buyer may elect not to, but the seller and the buyer’s agents are required to inspect.
  • The "parol evidence" rule states that Written terms are the complete and final intention of the parties.
  • Real estate agents may deal in real property securities such as promissory notes upon Securing a Real Property Securities Dealer (RPSD) endorsement to their broker’s license.
  • Novation is Substituting a new contract for an old one.
  • Owner sales representation of a business opportunity, including a liquor license: Is allowed for a licensed real estate broker.
  • A member of the National Association of Real Estate Brokers (NAREB) is called A REALTIST®.
  • Digital real estate forms and contracts are
  • Common and standard methods for contract creation and delivery.
  • Do commercial and industrial properties have the same disclosure requirements as residential 1- to 4-unit dwellings? No, they do not.
  • Electronic signatures using tools like DocuSign® are Valid, except when a notarized signature is required.
  • "Puffing" occurs when an agent describes a property as All of the above. (Small house as "cozy," two-year-old roof as "new," mediocre school as "desirable.")
  • The Unruh Civil Rights Act prohibits All of the above. (Steering, blockbusting, discrimination by businesses.)
  • The real estate recovery fund is Limited to $50,000 per occurrence.
  • Licensed brokers must retain their agency records for a minimum of Three years.
  • The California Department of Real Estate Has the jurisdiction to revoke an agent’s license.
  • The DRE audits primarily focus on Property management.
  • A Prepaid Rental Listing Service (PRLS) provides A list of available properties for a fee.
  • The public report issued by the Department of Real Estate is a Formal disclosure report of important facts about a new subdivision.
  • Is it adequate for an agent to conduct business in accordance with California state law? No. - Residential lofts (zero-bedroom dwellings) are always considered Exempt from consumer protection transfer disclosure and rental lead disclosure statements.
  • A licensed real estate agent is: Both A and B are correct.
  • The Institute for Real Estate Management (IREM®) is a sponsor of the: Certified Property Management (CPM®) designation.
  • U.S. Internal Revenue Code §1031 allows taxpayers to: Exchange an investment property for a like-kind investment property. - According to U.S. Internal Revenue Code §1031, “boot” means: Cash or its equivalent in value used to equalize the exchange.