CR-2-100 VERIFIED SALESPERSON EXAM PDF

100% VERIFIED SALESPERSON EXAM 2 What term describes a property where title reverts to the seller if alcoholic beverages are manufactured? A. Fee simple condition subsequent What interest do Owner A's children have when he leaves them his house subject to a life estate for his sist...

100% VERIFIED SALESPERSON EXAM 2 What term describes a property where title reverts to the seller if alcoholic beverages are manufactured? A. Fee simple condition subsequent What interest do Owner A's children have when he leaves them his house subject to a life estate for his sister? B. Remainder interest Several people concurrently own a piece of property. They may not own it as: A. Tenants in severalty In a trust, who holds title to the property D. Title is held by the trustee on behalf of the beneficiary. How long does the homeowner have to reinvest protected equity for the homestead exclusion? B. Six months What is the most common type of voluntary lien? D. Mortgage lien Owner A sells a landlocked piece of property to Owner B. How can Owner B gain access to the road? C. Easement by necessity Owner A sells the northwest quarter of a section of land. How much land is he selling? B. 160 acres When does lumber delivered to a house become a fixture? C. When the deck is complete Which unity is common to both joint tenants and tenants in common? A. Possession The term correlative most closely relates to: C. underground water rights. What system of legal description is the surveyor most likely using? A. Government survey A, B, and C own property as joint tenants. A sells her share to D. What is the new status of ownership? D. B and C are joint tenants with each other, and D is a tenant in common with them. Which of the following will not cause a cloud on the title to real estate? D. Pending zoning change Owner A gives the county a subsurface easement across her property to build a sewer line. This is best described as: B. Easement in gross by grant Merger of the servient tenement with the dominant tenement best describes: C. The termination of an easement The smallest subdivision affected by the Subdivision Map Act is: A. Two or more parcels Under the California Environmental Quality Act, an environmental impact report must be prepared for: B. All subdivisions that will have a substantial environmental impact Owner A owns 10 acres with a deed restriction prohibiting subdivision of the land into smaller parcels. What is true? B. Owner A may not subdivide his land When a home is sold to pay off unpaid debts, the first debt to be paid is: A. Tax liens Neighbor A built a fence 2 feet onto Owner B’s property. This is best described as: B. Encroachment Owner A owns a 3-story building on property zoned for a 20-story building. Owner A wants to make additional money. What might he do? B. Sell his air rights An agent employed to handle a number of different matters on behalf of someone is called a: A. General agent Which requirement makes an exclusive listing agreement valid? B. a definite termination date What happens to the listing agreement when the state takes Seller A's property by eminent domain? B. It is terminated. A written disclosure of agency representation is required for: D. one- to four-unit residential transactions. An implied agency: C. is created by the actions of the parties. The type of authority specified in an agency agreement is: B. actual authority. Depositing a buyer's deposit in the broker’s operating account is: D. called commingling and is a violation. Does Seller B owe Broker A a commission if the house is not sold but a full cash offer was made? A. Yes, because Broker A produced a buyer who met all of Seller B’s terms. Who does Broker B owe his fiduciary duty to when hired by Buyer A but paid by the seller? A. Buyer A, because she is the principal. What obligation does Seller A have regarding a deck added without a permit? D. She must advise the buyer of the situation. Broker A hired to help Buyer B find a house is considered a: B. special agent. If Seller A tells Broker B not to disclose a leaky roof, who is liable? D. Both Seller A and Broker B are liable. The market value of a property is: C. most probable price.  For the highest and best use, the property must be: D. all of the above. The most reliable method for appraising single-family homes is: B. sales comparison approach. A condition of sale adjustment is made for a property that was: C. foreclosure. The positive effect of larger homes on smaller homes in a neighborhood is called: D. progression. If a bathroom remodel costs $10,000 but adds only $5,000 to the home's value, this is an example of: A. contribution. Total depreciation from all sources is defined as: B. accrued depreciation. A licensed appraiser is required for federally related transaction appraisals on properties valued above: D. $250,000. Which is not a market-value transaction? D. all of the above In the cost approach, the cost to duplicate a building is: D. reproduction cost. In the sales comparison approach, adjustments are made to: B. the comparable to make it like the subject. Using the gross rent multiplier method, what is the value of a residential property with four units, each renting for $750, and a multiplier of 157? A. $491,000 The cost to purchase a property of similar usefulness” is a definition of: D. Substitution. In the cost approach, accrued depreciation is: B. Deducted from the replacement or reproduction cost. A property has four bedrooms. The comparable property three bedrooms and sold for $225,000. The value of a bedroom is $30,000. What is the value of the subject property? C. $255,000. A contemporary house may suffer a negative influence on its value due to: D. Conformity. When considering depreciation, whether an item is curable or incurable depends on: D. Its cost relative to the value it adds. If the reproduction cost of a house is $300,000 with an economic life of 50 years, how much does it depreciate each year using the straight-line method? B. $6,000. A mortgage where the borrower shares a portion of the profit when selling is called: A. Shared appreciation mortgage. The secondary mortgage market: B. Buys mortgages from primary lenders. A mortgage loan where the principal is due at the end of the term is called a(n): C. Interest-only loan. The loan-to-value ratio above which PMI is typically required is: D. 80%. A conforming loan is one that: A. amount that meets Meets FNMA standards. A benefit of a sale leaseback arrangement that is NOT included is: B. Liquidity of the investment. Terms meaning essentially the same action. C. A foreclosure and trustee’s sale Which is not considered an institutional lender? D. Mortgage company. Maximum loan broker commissions are set by: D. Real Property Loan Law. A purchaser using FHA financing for a $200,000 home must make a minimum cash investment of: C. $6,000. Buyer A purchases a $375,000 home with an 80% LTV and 2 points. How much does he pay in points? B. $6,000. A holder in due course is: A. A note purchaser. The right of redemption exists in: A. Judicial foreclosure. The court order to evict a former homeowner after a trustee’s sale is called: A. Unlawful detainer. Protection against losing homes in an installment purchase was created by: B. The Unruh Act. In a deed of trust, who can claim the property in the event of a default? C. The beneficiary. Which does NOT make direct mortgage loans? D. Mortgage brokers. What is the first month’s interest on a 30-year loan for $250,000 at 7% interest? C. $1,458. If Buyer A changes his mind after closing on a home, can he rescind the mortgage? B. No. A lender good-faith, booklet complying with HUD requirements is following: A. RESPA. A holographic will is valid if: B. Completely handwritten. The product of accretion is known as: B. Alluvium. Property of a person who dies intestate with no heirs is claimed by the state through: A. Escheat. A requirement for a valid deed is: A. Signature of the grantee. The form of deed that carries no warranties, implied or actual, is a B. Quitclaim deed. Escrow instructions given at a time to the escrow agent are called C. Unilateral. Escrow agent pays a referral fee to who send him business. C. He is breaking the law. Closing of title in escrow is considered complete when D. Documents are recorded.  A seller pays the yearly taxes of $3,600 in advance on July 1. He closes on the sale of the house on November Who owes what to whom? C. The buyer owes the seller $2,260. Which of the following terms does not belong with the others? B. Marketable title. Title insurance premiums are paid D. According to local custom and negotiation. What is the annual inflation factor permitted for local property taxes? A. 2% An owner-occupied home is entitled to how much of an exemption from the value of the property for tax purposes? D. $7,000 An uncashed deposit check may be kept by a broker for D. Whatever time the principal authorizes. An agent wanting to avoid charges of commingling funds might do all of the following except Accept the buyer’s offer with no deposit. The primary focus of the 1866 Civil Rights Act was C. Preventing housing discrimination on the basis of race. The California Fair Employment and Housing Act was formerly known as the A. Rumford Housing Act. The placement of an ad for the sale of a property through a real estate broker without disclosing that fact in the ad is called C. Blind advertising and is illegal. In order for a mobile home to be advertised for sale by a broker, it must be in a mobile home park or a location where it can remain A. For at least one year. If a transaction does not close, for how long must a broker keep the records? D. Three years from listing. For purposes of the state license law, the relationship between broker and salesperson is always B. That of employer and employee. An unlicensed real estate assistant can be compensated by D. Either A or B (broker or salesperson). How many members are on the California Real Estate Advisory Commission (not including the commissioner)? D. Ten. A restricted license could require a licensee to: D. All of the above. Which of the following would constitute a real estate license law violation? D. All of the above. What course must be completed before a candidate for real estate licensure can take the state salesperson’s licensing examination? A. None Which of the following would not prevent a real estate license from being issued? C. The applicant being only 18 years old. The California Real Estate Recovery Account is funded by: C. 5% of real estate license fees. Which of the following is true? B. California recommends study and observance of the National Association of Realtors (NAR) code of ethics. According to the NAR code of ethics, once a seller has accepted an offer, a Realtor: B. Can stop marketing the property. Before taking the state license examination to be a real estate salesperson, a person must have at least completed or be enrolled in a course in A. Real estate principles. A real estate broker operating a prepaid rental listing service is exempt from D. Both A and B. A licensee who has had her license suspended by the real estate commissioner after a hearing may appeal to the: D. Courts. Antitrust laws prohibit: D. A broker discussing a commission with a competing broker. Which of the following agreements must be in writing? D. all of the above A material fact and a material defect are the same thing: C. sometimes The obligation of a broker or salesperson to inspect a property for physical defects was based on B. Easton v. Strassburger Disclosure requirements for a real estate agent are limited to: D. material facts and all agency relationships Damage or destruction that occurs to a property before escrow closes but after the purchase contract is signed: A. is the responsibility of the seller A real estate salesperson’s license is behind on his child support payments and on a delinquent payment list. What type of license can he be issued? D. a temporary 150-day license What is the limit on the cost of work that can be done by an unlicensed contractor? A. less than $500 The practice of real estate without a real estate license is prosecuted by: C. the district attorney in the appropriate jurisdiction A warranty of authority: D. makes the principal responsible for certain agent actions  Use of the term Realtor unless one has the right to use the term D. all of the above A real estate salesperson working as an independent contractor will have D. workers’ compensation coverage Sellers of condominiums and common interest subdivisions must disclose: C. minutes of the past 12 months of homeowners’ association meetings Houses built before what year require a lead-based paint disclosure to buyers? A. 1978 The Natural Hazards Disclosure Act requires such disclosure for: A. virtually all properties Under the appropriate circumstances, which disclosures is not required by a seller? D. demographic change disclosure Owner A and Buyer B. agree on amount of money, type of deed, and closing will be. This contract is B. void and unenforceable The major difference between a unilateral and a bilateral contract is that: C. in a unilateral contract, only one party must act; in a bilateral contract, both parties must act Buyer A signs an agreement with Seller B to purchase her home. Seller B changes her mind about selling, but Buyer A still wants the house. Buyer B files a suit for C. specific performance A homeowner offers to compensate any broker who brings a successful buyer. She is create an B. express unilateral open listing Which of the following is most correct about buyer broker compensation? A. The fee paid by the seller is credited against the fee owed by the buyer Which of the following is not a requirement of a valid real estate sales contract? A. acknowledgment A real estate sales contract entered into by an emancipated minor is: C. valid If Farmer contract of sale is silent about the tomatoes, who has the right to harvest the crop? A. the new owner Which of the following is correct regarding the statute of limitations for enforcing written and oral contracts? B. written, four years; oral, two years A broker acting without a listing agreement must follow whose instructions with respect to the buyer’s deposit? A. the buyer’s Landlord A leased an apartment to Tenant B for six months without specifying the rent due date. Rent is due: A. at the end of the six months A written lease may be changed by all of the following except A. oral agreement A periodic tenancy without a lease for agricultural and grazing land is assumed to run A. for one year In addition to the usual elements of a contract, a real property land contract must include C. the number of years to complete the contract A lease option for a house: C. gives the tenant the right of possession, to purchase the house in the future Fees charged to a tenant in a mobile home park are limited to all of the following except A. occupancy fee The type of note that reduces the bank’s risk of changing interest rates is called the: D. adjustable rate note The last payment on a mortgage, typically twice as much as others, is called: C. a balloon payment. Which of the following is not true about the rights of a tenant in a lease situation? D. The tenant has a fee simple defeasible interest. A landowner’s subsurface rights include everything except: C. Rights to drill at a slant onto a neighbor’s property for oil and gas. The stock in a mutual water company that is appurtenant to the land: C. May only be transferred with the transfer of the property. In a real estate sale, fixtures: A. Are assumed to stay with the property. Which of the following is not true in government or rectangular survey system? C. A section is a square 1⁄2-mile on each side. In the government survey system, a lot less than a quarter section created due to natural features is called a(n) D. Government lot. An assessor’s map may not be used to legally describe a property in a deed unless the map: A. Has been filed in the county recorder’s office.