Core Exam Prep 2 Real Estate
.
- 1.
Two friends hold title as joint tenants. One borrowed money and executed a note deed of trust against the home. In terms of affecting title, this action could:
- A.
Destroy one of the four unities of joint tenants
- B.
Place the beneficiary in a precarious position should the borrower die before the debt is paid
- C.
Invalidate the note since a lien can be attached only to the undivided interest of all joint tenants
- D.
Create a security interest in all other real property in which the borrower may have an interest
Correct Answer
B. Place the beneficiary in a precarious position should the borrower die before the debt is paidExplanation
By executing a note deed of trust against the home, the borrower has created a lien on the property. As joint tenants, both friends have equal ownership and rights to the property. If the borrower were to die before paying off the debt, the lien would still be in effect. This would put the beneficiary in a precarious position because they would now be responsible for the debt, potentially affecting their ownership and rights to the property.Rate this question:
-
- 2.
Joint tenant estate held by two joint tenants is severed and ended by the following, except:
- A.
By the execution of a mortgage or deed of trust by one joint tenant creating a lien against his interest
- B.
A foreclosure by one of the joint tenants
- C.
One of the joint tenants transfers his interest to a third party
- D.
One of the joint tenants selling his interest
Correct Answer
A. By the execution of a mortgage or deed of trust by one joint tenant creating a lien against his interestExplanation
When one joint tenant executes a mortgage or deed of trust creating a lien against their interest, it does not sever or end the joint tenant estate. This means that the joint tenancy continues to exist, and the other joint tenant(s) still hold their interest in the property. The mortgage or deed of trust only creates a lien on the interest of the joint tenant who executed it, but it does not affect the joint tenancy as a whole.Rate this question:
-
- 3.
A man owns six separate parcels of real property. He wants to offer all of the parcels as security for a mortgage loan. The mortgage that he obtains will probably be:
- A.
A mortgage
- B.
A trust deed
- C.
Blanket mortgage
- D.
Security mortgage
Correct Answer
C. Blanket mortgageExplanation
A blanket mortgage is the most likely type of mortgage that the man will obtain because he wants to offer all six parcels of real property as security for the loan. A blanket mortgage allows multiple properties to be used as collateral for a single loan, providing flexibility for the borrower. This is different from a trust deed, which involves a third party holding the property as security, and a security mortgage, which is a general term that can refer to any mortgage secured by property.Rate this question:
-
- 4.
All of the followings are acts of one joint tenant terminates a joint tenancy, except when the joint tenant:
- A.
Sells his or her share
- B.
Transfer his or her share
- C.
Mortgages his or her share
- D.
Deeds his or her share to a co-owner
Correct Answer
C. Mortgages his or her shareExplanation
When a joint tenant mortgages his or her share, it does not terminate the joint tenancy. The joint tenancy will still exist, but the mortgage will create a lien on the joint tenant's share. The other joint tenants will still have the right of survivorship and will inherit the mortgaged share if the joint tenant dies.Rate this question:
-
- 5.
A conflict in a contract between buyer and seller and also in the instructions to return the deposit from the trust account. The broker was unable to resolve the problem and refers it to a third person by:
- A.
Interpleader action
- B.
Court action
- C.
Judicial action
- D.
Attorney
Correct Answer
A. Interpleader actionExplanation
In this situation, the correct answer is interpleader action. Interpleader action is a legal process in which a neutral third party, typically a court, is asked to resolve a dispute between two parties who both claim the same funds or property. In this case, the conflict between the buyer and seller regarding the return of the deposit from the trust account can be resolved through an interpleader action, where the court can determine the rightful recipient of the funds. This allows the broker to avoid being caught in the middle of the dispute and transfers the responsibility of resolving the conflict to a neutral party.Rate this question:
-
- 6.
A contingency in a contract is:
- A.
Nature of the contingency
- B.
Duration of the contingency
- C.
Method how to remove the contingency
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
A contingency in a contract refers to an uncertain event or condition that may occur in the future, which could affect the terms and performance of the contract. The nature of the contingency refers to the specific event or condition that is uncertain, such as a natural disaster or a change in market conditions. The duration of the contingency refers to the period of time during which the event or condition may occur and impact the contract. The method to remove the contingency refers to the actions or steps that need to be taken to address and mitigate the impact of the contingency on the contract. Therefore, all of the above options are correct in describing different aspects of a contingency in a contract.Rate this question:
-
- 7.
Under the real estate law, if an agent is found guilty of discrimination, the real estate commissioner will:
- A.
Revoke or suspend the agent’s license
- B.
Cancel the license for 150 days
- C.
Suspend the license for 3 months
- D.
Suspend the license for 1 year
Correct Answer
A. Revoke or suspend the agent’s licenseExplanation
Under real estate law, if an agent is found guilty of discrimination, the real estate commissioner has the authority to revoke or suspend the agent's license. This means that the agent's license to practice real estate can be completely taken away or temporarily suspended as a consequence of their discriminatory actions. This is a serious penalty that serves as a deterrent and ensures that agents adhere to fair housing laws and do not engage in discriminatory practices.Rate this question:
-
- 8.
Which of the following is misrepresentation?
- A.
Material to contrary
- B.
Information known by the broker that is false
- C.
False information to bind a buyer to a contract
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "All of the above". This means that all of the options listed - material to contrary, information known by the broker that is false, and false information to bind a buyer to a contract - are examples of misrepresentation. Misrepresentation refers to providing false or misleading information that can deceive or mislead someone, leading to a misunderstanding or harm. In this case, all three options involve providing false information or withholding important information, which can be considered misrepresentation.Rate this question:
-
- 9.
Broker Hadley took a listing from Watanabe for 30 days. Watanabe gave instructions to Hadley that he could purchase the property himself. After the 27th day, Hadley decided to buy the property. Broker Hadley present to the seller:
- A.
His Interest on the property
- B.
The net amount to the seller
- C.
Commission disclosure
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
Since Hadley took a listing from Watanabe and had the option to purchase the property himself, he would need to disclose his interest in the property to the seller. Additionally, as the broker representing the seller, Hadley would need to disclose the net amount that the seller would receive from the sale, as well as any commission that Hadley would earn from the transaction. Therefore, all of the options listed (His Interest on the property, The net amount to the seller, Commission disclosure) would need to be presented by Hadley to the seller.Rate this question:
-
- 10.
The purpose of a deed is:
- A.
To transfer title
- B.
To be acknowledged
- C.
The evidence in change of title or an interest
- D.
To be recorded in the county recorders office to be valid
Correct Answer
C. The evidence in change of title or an interestExplanation
A deed serves as evidence of a change in title or an interest in a property. It provides legal proof that ownership of a property has been transferred from one party to another or that a specific interest, such as a mortgage or easement, has been created. The deed is an important document that establishes the rights and obligations of the parties involved and is often recorded in the county recorders office to ensure its validity and to provide public notice of the transaction.Rate this question:
-
- 11.
Before his death, Westland had several listings. Now, Westland’s daughter is taking over the business. In regards to listings:
- A.
Automatically cancelled and she needs to re-list the properties for the clients
- B.
Automatically cancelled
- C.
May be cancelled only in writing and approved by the daughter
- D.
Must be cancelled within 24 hours or the listings are automatically transfer to the daughter
Correct Answer
A. Automatically cancelled and she needs to re-list the properties for the clientsExplanation
Since the question states that Westland had several listings before his death and now his daughter is taking over the business, it can be inferred that the listings would automatically be cancelled and the daughter would need to re-list the properties for the clients. This is because a change in ownership or management often requires updating and re-establishing business agreements and contracts, including property listings.Rate this question:
-
- 12.
A hispanic wants to be shown property in certain neighborhoods. The real estate agent should:
- A.
Show him properties as any other client
- B.
Show him properties only in areas he decides to
- C.
Provide information about the ethnicity of the neighborhood
- D.
Show properties in areas where Hispanic population is greater
Correct Answer
A. Show him properties as any other clientExplanation
The correct answer is to show him properties as any other client. This is the most fair and unbiased approach, treating the Hispanic client the same as any other client. It is important for real estate agents to provide equal service to all clients, regardless of their ethnicity or background.Rate this question:
-
- 13.
An example of police power:
- A.
Zoning
- B.
Condemnation
- C.
Eminent domain
- D.
Inverse condemnation
Correct Answer
A. ZoningExplanation
Zoning is an example of police power because it is a legal mechanism used by local governments to regulate land use and development. Through zoning, authorities can divide a municipality into different zones or districts, each with specific regulations and restrictions on how the land can be used. This allows the government to promote public health, safety, and welfare by ensuring that certain activities or structures are appropriately located and that incompatible land uses are separated. Zoning can help maintain the character of a neighborhood, control population density, and prevent conflicts between different types of land uses.Rate this question:
-
- 14.
Which of the following may be attached to the land:
- A.
Trees
- B.
Buildings
- C.
Water rights
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
All of the options listed (trees, buildings, water rights) can be attached to the land. Trees can be considered attached to the land as they are rooted in the ground. Buildings are physically attached to the land as they are constructed on it. Water rights refer to the legal rights to use water from a specific source, which can also be attached to the land. Therefore, all of the options mentioned can be attached to the land.Rate this question:
-
- 15.
The agent who will earn a commission is the one that:
- A.
Signed the purchase agreement
- B.
Communicated offer and acceptance from seller to buyer
- C.
Communicated the offer to the seller
- D.
Accepted a deposit first
Correct Answer
B. Communicated offer and acceptance from seller to buyerExplanation
The agent who will earn a commission is the one that communicated the offer and acceptance from the seller to the buyer. This means that the agent played a crucial role in facilitating the agreement between the two parties, ensuring that both the seller and the buyer were in agreement with the terms of the offer. By effectively conveying this information, the agent demonstrated their value in the transaction and therefore is eligible to earn a commission.Rate this question:
-
- 16.
In a new developed subdivision, the Real Estate Commissioner was informed of misrepresentations being made by the developer. The commissioner may stop the sale of more lots by:
- A.
Revoking the final public report
- B.
Filling an accusation
- C.
Suspending the developer’s contractor’s license
- D.
Issuing a desist and refrain order
Correct Answer
D. Issuing a desist and refrain orderExplanation
The Real Estate Commissioner may stop the sale of more lots by issuing a desist and refrain order. This order would prohibit the developer from engaging in any further misleading or deceptive practices in the sale of the lots. It is a legal action taken to prevent the developer from continuing their misrepresentations and protect potential buyers from being deceived. This action does not involve revoking the final public report, filling an accusation, or suspending the developer's contractor's license.Rate this question:
-
- 17.
Which of the following must be given to a buyer of a condominium unit?
- A.
Copy of the CC and R’s
- B.
Copy of the by laws
- C.
Copy of the most recent financial statement of the association
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
A buyer of a condominium unit must be given a copy of the CC and R's (Covenants, Conditions, and Restrictions), which outline the rules and regulations of the condominium association. They must also be given a copy of the bylaws, which specify how the association is governed. Additionally, the buyer must receive a copy of the most recent financial statement of the association, providing information about the financial health of the association. Therefore, all of the above documents must be given to the buyer of a condominium unit.Rate this question:
-
- 18.
The placement of a building on the land is known as:
- A.
Orientation
- B.
Topography
- C.
Elevation
- D.
Foundation plan
Correct Answer
A. OrientationExplanation
Orientation refers to the placement of a building on the land in relation to its surroundings, such as the direction it faces or its alignment with the sun. It involves considering factors like sunlight, wind patterns, and views in order to optimize energy efficiency, natural light, and overall functionality of the building. The orientation of a building can have a significant impact on its performance and the comfort of its occupants.Rate this question:
-
- 19.
A binding contract represents:
- A.
Offer and delivery
- B.
Offer and acceptance
- C.
Acceptance from buyer
- D.
Acceptance from seller to seller’s agent
Correct Answer
B. Offer and acceptanceExplanation
A binding contract represents the mutual agreement between two parties, where one party makes an offer and the other party accepts it. This implies that both parties have reached a consensus on the terms and conditions of the contract, creating a legally enforceable agreement. The offer and acceptance are essential elements of a binding contract, as they demonstrate the intention of the parties to be bound by the terms of the agreement.Rate this question:
-
- 20.
CPI refers to:
- A.
Listing agreements
- B.
Purchase agreement
- C.
Manufacturing
- D.
Commercial leases
Correct Answer
D. Commercial leasesExplanation
CPI refers to Consumer Price Index, which is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is commonly used to track inflation and adjust lease payments for commercial properties. Therefore, the correct answer is "Commercial leases".Rate this question:
-
- 21.
Who pays the service charge under a FHA loan?
- A.
Seller
- B.
Buyer
- C.
Both buyer and seller
- D.
Lender
Correct Answer
A. SellerExplanation
Under a FHA loan, the seller is responsible for paying the service charge. This charge is typically a percentage of the loan amount and covers the costs associated with processing and administering the loan. By requiring the seller to pay this fee, it helps to reduce the financial burden on the buyer and makes the loan more accessible and affordable.Rate this question:
-
- 22.
When comparing FHA and conventional loan, the conventional loan offers:
- A.
Higher loan to value ratio
- B.
Lower payments
- C.
Lower interest rates
- D.
Lower loan to value ratio
Correct Answer
D. Lower loan to value ratioExplanation
The correct answer is "Lower loan to value ratio". This means that the conventional loan offers a lower loan amount compared to the value of the property being financed. This can be beneficial for borrowers as it reduces the risk for the lender and may result in lower interest rates and payments. FHA loans, on the other hand, typically have higher loan to value ratios, allowing borrowers to finance a larger portion of the property's value.Rate this question:
-
- 23.
A commission to an agent may be in the form of:
- A.
Note
- B.
Trust deed
- C.
Cash
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
A commission to an agent can be given in different forms such as cash, trust deed, or a note. These forms of payment provide flexibility to both the agent and the party providing the commission. Cash is the most common form of payment as it is easily transferable and can be used immediately. Trust deeds and notes are more complex forms of payment that involve legal agreements and future payments. By offering all of these options, the party providing the commission can cater to the preferences and needs of the agent.Rate this question:
-
- 24.
A home sold for $178,000 and leased at $1,200. If another home is leased at $1,300 the value is:
- A.
$193,000
- B.
$136,000
- C.
$200,000
- D.
$190,000
Correct Answer
A. $193,000Explanation
$178,000 / $1,200 = 148.33
148.33 X $1,300 = $192,833Rate this question:
-
- 25.
The right of an interest in real property is represented by:
- A.
Quiet title action
- B.
Trust deed
- C.
Quitclaim deed
- D.
Mortgage
Correct Answer
A. Quiet title actionExplanation
A quiet title action is the correct answer because it is a legal proceeding that is used to establish ownership of a property and clear any competing claims or disputes. It is a way to "quiet" or resolve any uncertainties or doubts about the title to a property. This action can be taken when there are conflicting ownership claims, unclear or missing property records, or when there is a need to remove a cloud on the title. It is a legal process that allows a person to establish their rightful ownership and have a clear and marketable title to the property.Rate this question:
-
- 26.
A brother and sister owned a property as joint tenants. The brother died penniless and left unsecure debts, the title to the sister is now:
- A.
Tenants in common
- B.
Free and clear of debts from the brother
- C.
Lien on the property from the debts from the brother
- D.
To pay only half of the brother’s debts
Correct Answer
B. Free and clear of debts from the brotherExplanation
When two individuals own a property as joint tenants, they each have an equal share and right to the property. In this scenario, the brother's death does not affect the sister's ownership of the property. Since the brother died penniless and left unsecured debts, those debts do not transfer to the sister. Therefore, the sister is now the sole owner of the property, free and clear of any debts from the brother.Rate this question:
-
- 27.
Which of the following best refers to seller’s market?
- A.
Cause prices to drop as demand is decrease and supply increases
- B.
High prices of a product with demand and supply lags
- C.
Demand and supply of a product with a decrease of buyers
- D.
Decrease on land and construction
Correct Answer
B. High prices of a product with demand and supply lagsExplanation
A seller's market refers to a situation where there is high demand for a product or service, but the supply is limited. This leads to an increase in prices as sellers have the advantage of scarcity. In this case, the correct answer is "High prices of a product with demand and supply lags" because it accurately describes the concept of a seller's market where prices are high due to limited supply and high demand.Rate this question:
-
- 28.
A real estate broker discovers that one of the agents was receiving referral fees from a lender that they do business with. The broker fired the agent and warned the other agents not to receive any referrals according to the real estate law:
- A.
Both broker and salesperson may be subject for prosecution
- B.
Only the agent will prosecuted by the department of real estate
- C.
Only the broker will be prosecuted by the department of real estate
- D.
The broker’s conduct is acceptable no should receive referral fees
Correct Answer
A. Both broker and salesperson may be subject for prosecutionExplanation
The correct answer is that both the broker and salesperson may be subject to prosecution. This is because the real estate law prohibits receiving referral fees from lenders that they do business with. Therefore, both the broker and the salesperson are in violation of this law and may face legal consequences.Rate this question:
-
- 29.
Buyer and seller decided to cancel the transaction. The seller instructed the broker to return the buyer’s deposit. The broker should:
- A.
Return the deposit and sue buyer for his commission
- B.
Return only half of the deposit to the buyer
- C.
Return the deposit as instructed
- D.
The agent may collect his commission in court from the seller
Correct Answer
C. Return the deposit as instructedExplanation
The correct answer is to return the deposit as instructed. In this scenario, the buyer and seller have mutually agreed to cancel the transaction. As a result, the seller has instructed the broker to return the buyer's deposit. The broker's responsibility is to follow the seller's instructions and return the deposit accordingly. There is no mention of the broker suing the buyer for their commission or collecting the commission in court from the seller, so these options are not relevant in this situation.Rate this question:
-
- 30.
A document used to represent another person:
- A.
Power of attorney
- B.
Grant deed
- C.
Reconveyance deed
- D.
Attorney in fact
Correct Answer
A. Power of attorneyExplanation
A power of attorney is a legal document that allows one person (known as the principal) to appoint another person (known as the attorney-in-fact) to act on their behalf and make decisions or perform tasks on their behalf. The attorney-in-fact is authorized to represent the principal in various matters, such as signing legal documents, managing finances, or making healthcare decisions. Therefore, a power of attorney is a document that is used to represent another person and give them the authority to act on their behalf.Rate this question:
-
- 31.
In regards to appraisal, all of the followings are true, except:
- A.
Cost approach is use in new construction
- B.
Cost approach is use for special properties
- C.
Cost approach is use for commercial building
- D.
Cost approach sets the lower limits of value
Correct Answer
D. Cost approach sets the lower limits of valueExplanation
The cost approach is a method used to estimate the value of a property by considering the cost of replacing it with a similar property. It is commonly used in new construction, special properties, and commercial buildings. However, the cost approach does not set the lower limits of value. Instead, it provides an estimate of the upper limit of value, as it assumes that a buyer would not pay more for a property than the cost of acquiring a similar property.Rate this question:
-
- 32.
Which of the following policies covers all the risks?
- A.
Homeowners insurance
- B.
Extended policy
- C.
Standard policy
- D.
No policy covers everything
Correct Answer
D. No policy covers everythingExplanation
No policy covers everything means that none of the mentioned policies provide coverage for all risks. This implies that each policy has its limitations and exclusions, and there is no single policy that can protect against all possible risks. Therefore, individuals may need to consider multiple policies or additional coverage options to adequately protect themselves against various risks.Rate this question:
-
- 33.
When appraising an old residential property in regards to periodic tenancy:
- A.
Compare to rentals and comparables in the area
- B.
Determined by square footage
- C.
According to the type of neighborhood
- D.
Obtained from the assessor’s value
Correct Answer
A. Compare to rentals and comparables in the areaExplanation
When appraising an old residential property in regards to periodic tenancy, it is important to compare it to rentals and comparables in the area. This allows the appraiser to assess the property's value based on similar properties in the same location and rental market. By comparing to rentals and comparables in the area, the appraiser can determine a fair and accurate value for the property.Rate this question:
-
- 34.
Bond, deed of trust, and notes held by a third party is known as:
- A.
Beneficiary
- B.
Lender
- C.
Escrow
- D.
Trustee
Correct Answer
C. EscrowExplanation
When a bond, deed of trust, or notes are held by a third party, it is referred to as "escrow." Escrow is a financial arrangement where a neutral third party holds assets or documents until certain conditions are met. In this case, the third party holds these important legal documents on behalf of the parties involved, ensuring that all conditions are fulfilled before transferring ownership or funds. The term "escrow" is commonly used in real estate transactions, where the escrow agent holds the deed and funds until the sale is completed.Rate this question:
-
- 35.
A contract replaced entirely by a new one is known as:
- A.
Amendment
- B.
Replacement
- C.
Novation
- D.
Renew
Correct Answer
C. NovationExplanation
Novation refers to the act of replacing an existing contract with a new one, where the rights and obligations of the parties involved are transferred to a new set of parties. This means that the original contract is entirely replaced by the new one, with no amendments or modifications made to the original terms. Therefore, the correct answer is Novation.Rate this question:
-
- 36.
Fuentes purchased Brown’s house and agreed to assume the existing mortgage:
- A.
Brown is relieve from future liabilities
- B.
Brown is liable for the loan
- C.
Fuentes is not primary responsible for the loan
- D.
Brown and Fuentes are liable
Correct Answer
A. Brown is relieve from future liabilitiesExplanation
When Fuentes purchased Brown's house and agreed to assume the existing mortgage, it means that Fuentes has taken over the responsibility of paying off the loan. This relieves Brown from any future liabilities or obligations towards the mortgage. Fuentes becomes the primary responsible party for repaying the loan, while Brown is no longer liable for it.Rate this question:
-
- 37.
Followings will determine if an item is a fixture or not, except:
- A.
Intention
- B.
Agreement
- C.
Cost
- D.
Relationship
Correct Answer
C. CostExplanation
The cost of an item does not determine if it is a fixture or not. The determination of whether an item is a fixture or not is based on factors such as intention, agreement, and relationship. The cost of the item is not relevant in this determination.Rate this question:
-
- 38.
Followings will determine if an item is a fixture or not, except:
- A.
Intention
- B.
Agreement
- C.
Time
- D.
Relationship
Correct Answer
C. TimeExplanation
The time factor does not determine whether an item is a fixture or not. The determination of whether an item is a fixture is typically based on factors such as intention, agreement, and relationship. Time alone does not play a significant role in determining the status of an item as a fixture.Rate this question:
-
- 39.
A sale of a property through probate, the commission will determine by:
- A.
Court ordered
- B.
Real estate commissioner
- C.
Board of directors
- D.
The administrator
Correct Answer
A. Court orderedExplanation
In the sale of a property through probate, the commission is determined by a court order. This means that the court has the authority to decide the amount of commission that will be paid to the relevant parties involved in the sale. The court takes into consideration various factors such as the complexity of the case, the efforts put in by the parties, and any applicable laws or guidelines. The court order ensures a fair and equitable distribution of commission in accordance with the legal requirements and the specific circumstances of the probate sale.Rate this question:
-
- 40.
A voidable contract is a contract that:
- A.
Is valid only when is signed, but for some reasons, it cannot prove by either party
- B.
Contains all legal requirements but may be cancelled by anyone
- C.
Is valid and enforceable on its face, but it may be rejected by one of the parties
- D.
Is a contract with no legal effect
Correct Answer
C. Is valid and enforceable on its face, but it may be rejected by one of the partiesExplanation
A voidable contract is a contract that is valid and enforceable on its face, meaning that it meets all the legal requirements to be considered a valid contract. However, it may be rejected or canceled by one of the parties involved. This means that although the contract is initially binding, one of the parties has the option to void or cancel it if certain conditions or circumstances arise.Rate this question:
-
- 41.
When comparing real property to personal property:
- A.
Immovable by law
- B.
Movable
- C.
Personal exclusively
- D.
Transferable by a bill of sale
Correct Answer
A. Immovable by lawExplanation
Real property refers to land and any permanent structures attached to it, such as buildings or houses. It is considered immovable by law because it cannot be easily transferred or moved from one location to another. On the other hand, personal property refers to movable assets that can be physically transferred, such as vehicles, furniture, or jewelry. Therefore, the correct answer is "Immovable by law" as it distinguishes real property from personal property based on their transferability.Rate this question:
-
- 42.
A Standard policy will cover against:
- A.
Property lines
- B.
Zoning
- C.
Legal incompetence of the grantor
- D.
Property survey
Correct Answer
D. Property surveyExplanation
A property survey is a detailed examination and measurement of a property's boundaries, structures, and features. It provides important information about the property's legal description, encroachments, easements, and potential issues that may affect its value or use. A standard policy will cover against any discrepancies or errors found during the property survey, ensuring that the buyer is protected from any financial losses or legal disputes that may arise due to inaccurate boundary lines or other survey-related issues.Rate this question:
-
- 43.
Which of the following is not a lien?
- A.
Taxes
- B.
Trust deed
- C.
Judgment
- D.
Restrictions
Correct Answer
D. RestrictionsExplanation
Restrictions are not considered a lien because they do not involve a creditor's claim on a property. Liens are legal claims that give creditors the right to take possession of a property if the debtor fails to repay a debt. Taxes, trust deeds, and judgments, on the other hand, are all examples of liens as they involve a creditor's claim on a property for unpaid taxes, mortgage debt, or court-ordered payments, respectively.Rate this question:
-
- 44.
Under the income tax law, a salesperson is:
- A.
Employee of the broker he/she is permitted to work for
- B.
Self employed contractor
- C.
Employee of the broker and the broker must pay for medical insurance
- D.
Self employed and employee of the broker
Correct Answer
B. Self employed contractorExplanation
According to the income tax law, a salesperson is considered a self-employed contractor. This means that they work independently and are not considered an employee of the broker they work for. As a self-employed contractor, the salesperson is responsible for their own taxes and expenses, and they are not entitled to benefits such as medical insurance from the broker.Rate this question:
-
- 45.
“As Is” is permitted when:
- A.
A buyer is fully informed about known defects before bind to contract
- B.
Only if buyer asks for a transfer disclosure
- C.
The property is finance through a private investor
- D.
Only if the property needs major repairs
Correct Answer
A. A buyer is fully informed about known defects before bind to contractExplanation
"As Is" is permitted when a buyer is fully informed about known defects before binding to a contract. This means that the buyer is aware of any issues or problems with the property and agrees to purchase it in its current condition, without any expectation that the seller will make any repairs or improvements. By being fully informed about the known defects, the buyer can make an informed decision about whether or not to proceed with the purchase.Rate this question:
-
- 46.
An appraisal is least concern with general state economy in appraising for:
- A.
Shopping center
- B.
Electronic assembly
- C.
Medical dental building
- D.
Industrial park
Correct Answer
C. Medical dental buildingExplanation
An appraisal for a medical dental building is least concerned with the general state economy because the demand for medical and dental services is generally not heavily influenced by economic conditions. People still require healthcare services regardless of the state of the economy. Therefore, the value of a medical dental building is more likely to be determined by factors such as its location, size, condition, and the demand for healthcare services in the specific area, rather than the overall state of the economy.Rate this question:
-
- 47.
The maximum amount that may be recovered from the Recovery Trust Fund is:
- A.
$20,000
- B.
$10,000
- C.
$100,000
- D.
$50,000
Correct Answer
C. $100,000Explanation
The maximum amount that may be recovered from the Recovery Trust Fund is $100,000. This means that if there are any losses or damages that need to be compensated, the maximum limit that can be claimed from the fund is $100,000.Rate this question:
-
- 48.
For a blind ads, it doesn’t identify the:
- A.
Broker
- B.
Salesperson
- C.
Seller
- D.
Buyer
Correct Answer
A. BrokerExplanation
A blind ad is an advertisement that does not identify the broker. This means that the ad does not disclose the name or contact information of the broker who is advertising the product or service. The purpose of a blind ad is to generate interest and inquiries without revealing the identity of the broker. This can be useful in situations where the broker wants to maintain confidentiality or create a sense of mystery around the product or service being offered. Therefore, the correct answer is "Broker" because a blind ad does not identify the broker.Rate this question:
-
- 49.
For a property under default, a possession of the property is held by:
- A.
Trustee
- B.
Trustor
- C.
Beneficiary
- D.
Mortgagee
Correct Answer
B. TrustorExplanation
The correct answer is Trustor. In a default situation, the possession of the property is held by the Trustor. The Trustor is the person who created the trust and transferred the property into it. They retain control and possession of the property until a default occurs, at which point the property may be transferred to the trustee or another party involved in the trust.Rate this question:
-
- 50.
Earthquake hazard report must be issued to properties in:
- A.
All California
- B.
All counties
- C.
All cities
- D.
Only to specific types of structures on earthquake zones
Correct Answer
B. All countiesExplanation
An earthquake hazard report must be issued to properties in all counties. This means that regardless of the location within California or the type of structure, all properties in every county must receive an earthquake hazard report. This ensures that all residents and property owners are aware of the potential risks and can take necessary precautions to mitigate the impact of earthquakes.Rate this question:
-
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Dec 07, 2011Quiz Created by
Slynch1783
Back to top