CR-1-100%-Verified-SALESPERSON EXAM PDF

100% VERIFIED SALESPERSON EXAM 1 A continuous urban corridor joining at least two cities is: A. megalopolis The term real property is also known as: B. the bundle of rights The rights of a landowner to a river bordering their property are:...

100% VERIFIED SALESPERSON EXAM 1 A continuous urban corridor joining at least two cities is: A. megalopolis The term real property is also known as: B. the bundle of rights The rights of a landowner to a river bordering their property are: C. riparian rights A fixture in a real estate transfer is normally: A. assumed to be included in the transfer A tenant may take jewelry cases if: D. removal doesn’t cause substantial damage A legal description of property must: D. none of the above The lot and block system is also known as: C. rectangular survey system A section of land contains: D. 640 acres The type of ownership providing the most complete bundle of rights is: B. fee simple absolute The interests of a holder of a life estate are: C. possession, use, and ownership The requirement for multiple owners to take title at the same time is characteristic of: B. joint tenancy The most similar types of inheriting property are: A. joint tenancy and community property with right of survivorship A group of people joining together to invest in real estate is a: D. syndicate Landowner is entitled to compensation for zoning changes: A. when denied all practical economic use A statement of goals for community growth is: B. general plan A landowner seeking relief for physical difficulty in developing property should seek: D. variance The Subdivided Lands Law takes effect at: C. the fifth lot The primary difference between a common interest subdivision and a standard subdivision is: B. ownership of common areas The state has special control for development in: D. all of the above All liens are encumbrances. All encumbrances are: B. limitations A mechanic’s lien creates: A. a cloud on title The land benefiting from an easement is the: B. dominant tenement A deed restriction prohibiting the sale of property to certain ethnic groups is: D. illegal and unenforceable A private deed restriction placing a restraint on alienation is: D. all of the above The process by which eminent domain occurs is called: D. condemnation. Which of the following types of easement does not run with the land? A. the electric company’s easement to cross over your land with their power lines An easement is an encumbrance: D. always. An agent represents a D. principal. What is another term for an agent entrusted to act on someone’s behalf? C. fiduciary The seller of a one-family house is required to disclose to buyers B. the structural and mechanical condition of the property. The agent who brings a ready, willing, and able buyer to a seller is commonly called the: C. procuring cause. Broker A has a listing agreement to sell Seller B’s house…..Seller B rejects the offer and a week later attempts to negotiate directly with Buyer C. Seller B has violated: A. the duty of care. Seller A has signed a listing agreement with Broker B. Without the assistance of Broker B, Seller A sells her property. What type of listing agreement did Seller A sign? D. an exclusive agency listing Broker A agrees to represent Seller B in selling her house, with Seller B paying a commission if successful. What type of contract exists? D. A bilateral express contract exists between Broker A and Seller B. Seller A wants $200,000 after expenses. Broker B keeps anything above that. What type of agreement is this? A. a net listing A cooperating broker may represent: D. any of the above. Who of the following owes fiduciary responsibility to the buyer? B. the buyer’s agent A real estate salesperson is always considered an A. employee Which of the following is not a type of listing agreement? B. multiple listing A broker hired to sell a house is considered a: C. special agent. Seller A wants broad exposure but no commission if she sells herself. What type of listing? A. open listing  Broker A has a listing for Seller B’s house and a buyer’s agency agreement with Buyer C. If Buyer C wants Seller B’s house, what’s the risk for Broker A? D. the creation of a dual agency. All agency agreements for property sale must be in writing except for creation by: D. There are no exceptions. Broker A keeps Seller B’s property details but won’t market it. Seller B pays a commission if Broker A finds a buyer. This is: B. express unilateral. How long can a broker hold an uncashed deposit check before an offer is accepted? D. until the offer is accepted The most profitable use of a property is called: C. highest and best use. Which is not a characteristic of value? A. change Two $50,000 lots combined are worth $125,000. This added value is: D. plottage. The process of accounting for differences between a subject property and a comparable property in appraisal is called B. making adjustments. Which of the following is an example of functional obsolescence? Having to get to a bedroom by going through another bedroom To calculate effective gross income, which is deducted from potential gross income? C. vacancy and collection loss The date of the value estimate in an appraisal is the B. effective date If you assume depreciation occurs at an even rate, what method would you use? Economic age life method In the income approach to estimating value, another term for the capitalization rate is. D. rate of return A parking lot developed with office buildings is: B. an interim use of the property The gross rent multiplier approach is useful in appraising: D. single-family homes After applying all three approaches, the appraiser will B. reconcile the three values Potential gross income of an investment property is the same as: C. market rent plus other building income Which approach estimates land and building value separately? A. cost approach The term ad valorem is most closely associated with: B. assessed value Appraisers paid on the basis of a percentage of the value of a property are: D. in violation of appraisal ethical standards An improvement to a property is worth the value it adds, not its individual cost, this is the principle of: D. contribution Rising mortgage interest rates will tend to: A. lower property values A person wanting to buy a $200,000 home with $40,000 down and borrowing $160,000 is making use of: A. leverage A borrower secures a preferred interest rate by paying 1 point on a $215,000 mortgage. How much is this charge? C. $2,150 Which Federal Reserve activity most directly affects the rates charged for consumer credit? C. adjusting the discount rate After 1989, who insured deposits in all federally chartered banks? B. FDIC The difference between the value of a property and all debts attributed to it is defined as D. equity The terms of the promise to pay back borrowed money are found in the C. promissory note The process by which a mortgage loan is paid off in equal payments is called B. amortization The object of creating a negotiable instrument is to A. allow a note to be transferred A borrower pays $280,000 at 7% interest. How much interest will he pay in the first year? A. $19,600 California law protects homeowners when the sale of the property cannot cover the mortgage balance: D. only on the original purchase mortgage loan A purchaser wants to buy a $330,000 house with an 80% LTV ratio. How much is the down payment? C. $66,000 What does a discount point do to the effective yield for a lender? A. It raises it Equity is most accurately defined as B. the value of the house minus all liens and encumbrances The law that controls advertising of real estate loans is C. Regulation Z What is an impound account? An account for monthly payments covering taxes and insurance Which is not true of VA and FHA loans in California? D. Money is lent directly by these agencies Which type of mortgage loan results in negative amortization? D. graduated payment  A type of purchase financing that allows the seller to take immediate possession but delays transfer of title is: D. all of the above. The interest rate charged by the Federal Reserve to borrow money is: C. discount rate. Buyer A pays $300,000 for a house with a $60,000 down payment. After a 25% appreciation, his profit is: B. $75,000. A testator who dies testate has no need of: A. the laws of intestate succession. Which of the following is true? B. All accretions are accessions. Builder A turns over the streets in his new subdivision to the town by: D. statutory dedication. Whose signature must be on a deed for validity? B. the grantor Extra protection for title problems on a warranty deed is provided by: D. title insurance. Escrow is created by: C. execution of a binding contract. Which is not a duty of an escrow agent? D. to conduct an independent investigation of the transaction. The process of allocating payments, such as taxes, at closing is called: A. proration. A seller prepaid $2,400 in taxes on July 1. Closing on November 1, the buyer owes: B. $1,400. The opposite of marketable title is: D. cloud on title. Changes in land use from zoning changes are covered by: C. neither ALTA nor CLTA extended coverage policy. "Ad valorem" is usually associated with B. property taxes. If the assessed value of a property is $55,000, the annual tax is: B. $550. Depositing a client’s funds into a broker’s personal account is called: A. commingling. The most desirable form of deposit from a seller’s point of view is: C. An immediately negotiable check. 100 The act extending antidiscrimination protection to business establishments is the: C. Unruh Civil Rights Act. The California law that prohibits redlining is the: A. Housing Financial Discrimination Act. Blind ads for real estate are B. for no properties. A mobile home ad must be withdrawn within C. 48 hours A broker must keep transaction records for C. 3 years after closing. A broker employing independent contractors has: C. the same amount of supervisory responsibility. A salesperson collects a commission directly from a homeowner. This is: A. a violation of the law. An unlicensed assistant can: C. create sales brochures. Real estate law in California is administered by the: A. Department of Real Estate. A violation of Real Estate Law could result in all penalties except: D. a term of not more than one year in jail. What type of license is issued to a real estate salesperson applicant with an unpaid child support obligation? D. A 150-day temporary license Which of the following is not exempt from requiring a real estate license? D. A corporation providing real estate sales services Where are payments for financial injury due to fraudulent practices of a real estate broker made from? B. California Real Estate Recovery Fund Which of the following is true? D. None of the above Informed consent to practice dual agency is: C. Required by both California law and the National Association of Realtors code of ethics When must a real estate salesperson be licensed to receive a commission? A. At the time of the transaction How long does an applicant have to obtain their salesperson license after passing the exam? B. One year Which of the following is true? B. All salespeople must work for brokers. What is the grace period during which an expired license may be renewed by paying a fee? B. Two years, and the agent cannot practice during that time How much can commercial property owners require? D. There is no maximum Who can pay for public improvements such as sidewalks? D. All of the above How is the completion of the mandatory physical inspection of the property certified? D. The Real Estate Transfer Disclosure Statement If a broker is asked about the cause of death of a previous owner, what should they do? A. Must answer the question honestly  Seller disclosure of a dwelling’s physical condition is required for: C. Mobile homes Within what time frame must legal action be filed due to information in a property transfer disclosure statement? D. Three years How is the Real Estate Recovery Account funded? D. Real estate license fees Which of the following is least likely to be considered fraudulent misrepresentation? A. This house is in a great school district When must Broker A disclose his interest in a property? D. All of the above A member of the National Association of Realtors is known as a: C. Realtor The Homeowner’s Guide to Earthquake Safety must be provided to purchasers of homes built before: A. January 1, 1960 Which of the following is not a material fact affecting property value? C. The presence of a significant minority population in the community Houses built after 1980 and sold with a broker will require all except: A. A lead-paint hazard disclosure What do state responsibility areas deal with in terms of disclosure? B. Fire hazard Ordnance location disclosure deals with: D. Possibility of live ammunition from military installations in the area What type of contract is created when one party agrees to sell property for a certain amount of money in writing? A. Express bilateral If a contract involves burning down a building for insurance, what type of contract is it? B. Void An option to purchase property is an: B. Express unilateral agreement Which listing agreement does not need to be in writing? D. An agent representing a landlord renting rooms in a rooming house on a week-to-week basis Who does a real estate broker always represent? D. Buyer and/or seller When is a real estate commission generally earned? C. Mutual consent If Buyer A wants to buy property for $300,000 and Seller B is willing to sell for $350,000, who is the offeree and offeror? B. Buyer A is the offeree; Seller B is the offeror What is the minimum age for a married person to enter into a contract? D. There is no minimum age for a married person In an option agreement, the consideration is: C. The amount paid for the right to purchase the property An exclusive authorization and right-to-sell agreement is considered an: D. Express bilateral contract A tenant who stays in rented property after the lease has expired without the landlord’s consent has: A. An estate at sufferance What is the tenant’s interest in property? B. Leasehold and is considered personal property A periodic tenancy can be created from: D. Either A or B What is required for a commission payment to be enforced from the listing agreement? B. The agreement must be in writing What should Broker A do with respect to two offers on Seller B’s house? A. Present both offers to the seller as soon as possible The Mobilehome Residency Law covers agreements: D. Both A and B What is the charging of interest on a note above the statutory maximum rate called? D. Usury The two primary documents dealing with payment of a loan are the mortgage or deed of trust and a: A. Promissory note Owner A sells property to Buyer B and needs access to the county road. What must happen? D. Owner A must reserve an easement appurtenant for himself. The most serious consequence of a covenant versus a condition in a deed is: C. Violation of a condition could result in forfeiture of the land. How can a deed restriction preventing aluminum siding be changed? B. All homeowners should sign a voluntary agreement. What is the study of population characteristics called? A. Demography Real property includes: C. The land, structures, and fixtures.