ALL THINGS PROPERTY
PRACTICE OF REAL ESTATE AND DISCLOSURES
AGENCY & CONTRACTS
MORE PRACTICE OF REAL ESTATE
MRT MISCELLANEOUS
100

Who issues variances? 

A. Architectural Review Board 

B. EPA 

C. Municipal Engineers 

D. Zoning Board of Appeals

D. Zoning Board of Appeals


  1. Answer: D. Zoning Board of Appeals/Adjustments
  2. A variance is required when the landowner is requesting to modify the property's area and/or physical aspect or its utility.
100

What is the fine placed for a violation of license law?

A. $1,000

B. $5,000 

C. $6,000 

D. $10,000

A. $1,000


  1. Answer: $1,000
100

Which listing agreement allows the owner of the listed property to sell the property on their own and not have to pay commission to the listing broker? 

A. Open listing 

B. Option listing 

C. Exclusive agency listing 

D. Both A and C

D.  Both A and C


  1. Answer: A & C (Open + Exclusive agency) 

  2. Explanation: Neither an open or exclusive agency guarantees a commission; if SELLER is responsible for procuring a willing and able buyer, no commission is given 

  3. Open Listing: Non-exclusive listing that a seller uses multiple real estate agents to find potential buyers 

  4. Exclusive Agency: Grants broker/agent to be the only representative in selling the property, however, if seller procures the buyer than the buyer does not have to pay commission 

100

Which of the following is not an essential element of a contract?

A. Notarized signature

B. Consideration 

C. Agreement by offer and acceptance 

D. Competent parties

A. Notarized signature


  1. Answer: A. Notarized signature


100

What is real property tax based on? 

A. Assessed value

B. CMA 

C. Appraisal 

D. Taxable value

A. Assessed value


  1. Answer: A. Assessed Value
200

What is the term used to describe the natural increase of land? 

A. Expansion 

B. Avulsion 

C. Erosion 

D. Accretion

D. Accretion

200

A due-on-sale clause, whether it is enforceable or not, contained in a mortgage or trust deed is a type of:

A. defeasible clause

B. acceleration clause

C. legally enforceable clause

D. executed clause

B. acceleration clause


  1. Answer: Acceleration Clause 
  2. Explanation: A term in a loan agreement that requires the borrow to pay off the loan immediately under certain conditions.
200

Which of the following is a common-law fiduciary duty? 

A. Care 

B. Accounting 

C. Confidentiality 

D. All of the above

D. All of the above


  1. Answer: D (all of the above) 

  2. Explanation: An agent has 5 duties to his/her principal: "COALD" - Care, Obedience, Accounting, Loyalty, Disclosure 

200

What term is used to describe the document attached to an original contract?

A. Addendum

B. Signed agreement 

C. Requirements clause 

D. Terms and conditions

A. Addendum


  1. Answer: A. Addendum
200

What is the term used to define the estimated age of a property based on its utilities and physical wear and tear? 

A. Economic life 

B. Effective age

C. Use discount 

D. Depreciation

B. Effective age


  1. Answer: D (all of the above) 

  2. Explanation: Functional Obsolescence is a reduction in usefulness/desirability because of an outdated design feature

300

What type of easement attaches rights to a tenant instead of the land?

A. Easement appurtenant 

B. Easement in gross

C. Prescriptive easement 

D. All the above

B. Easement in gross


  1. Answer: Easement in gross
  2. Explanation: Selling rights to the land to another person or company.
300

A material fact is information that concerns the ______ of property.

A. Ceilings 

B. Floor insulation 

C. Roof 

D. All of the above

D. All of the above


  1. Answer: All of the above
  2.  
  3. Explanation: A material fact is defined as anything that would affect 1) the value of the property or 2) a buyer/tenant's decision to purchase/lease the property or how much to     offer to purchase or lease the property. 
  4. Example: Leaky roof or flooding basement.
300

What is an agent required to do if a client refuses to sign an agency disclosure form?

A. Terminate relationship

B. Create record of refusal in writing

C. Continue without record of the refusal

D. Take legal action against the client

B. Create record of refusal in writing


  1. Answer: Create record of refusal in writing 

  2. Explanation: Agents are required to keep all records on file  

300

A listing agent gave part of his/her commission to the buyer. He/She:

A. is guilty of committing a civilly wrong act

B. must disclose this to the seller

C. is guilty of criminal action

D. may be disciplined by the real estate commissioner

B. must disclose this to the seller


  1. Answer: must disclose this to the seller


300

Which is an example of functional obsolescence? 

A. Four bedrooms and one bathroom in a private residence 

B. All bedrooms located on the 2nd floor and only one bathroom located on the 1st floor 

C. Walking through one bedroom to get to another bedroom 

D. All of the above

D. All of the above


  1. Answer: D (all of the above) 

  2. Explanation: Functional Obsolescence is a reduction in usefulness/desirability because of an outdated design feature

  3. Functional vs Economic Obsolescence 

    1. Functional lies within property line  

    2. Economic: Outside property line 

400

Which of the following is not an essential element of a deed? 

A. Signature of the grantee

B. Date

C. Identification of the grantor and grantee 

D. Adequate description of the property

A. Signature of the grantee


  1. Answer: Signature of the grantee. 
  2. Explanation: (1) written instrument, (2) competent grantor, (3) identity of the grantee, (4) words of conveyance, (5) adequate description of the land, (6) consideration,     (7) signature of grantor, (8) witnesses, and (9) delivery of the completed deed to the grantee.
400

A ______ is needed for a developer to sell or lease any lots or parcel in a residential subdivision in California. 

A. Subdivision public report

B. New residential housing report 

C. Residential subdivision report 

D. License to sell new property

A. Subdivision public report


  1. Answer: Subdivision public report 
  2. Explanation: Any person or persons who intend on selling or leasing five or more lots, parcels, or units within a subdivision must first obtain a public report. 
  3. All prospective purchasers must be given a copy of the public report and must be given a chance to read it before any binding contract is signed. 
400

The most common listing agreement allows the Broker to: 

A. convey title

B. find a purchaser, obtain an offer, and bind the principal to the offer. 

C. find a purchaser, fill out the deposit receipt, obtain an offer, and present the offer.

D. guarantee the purchaser will accept

C. find a purchaser, fill out the deposit receipt, obtain an offer, and present the offer.


  1. Answer: find purchaser, fill out the deposit receipt, obtain an offer, and present the offer 

  2. Explanation: As a listing agent/broker, these are the following steps that lead to the sale of a property 

400

A real estate licensee negotiated the sale of a farm for a seller. The agent's commission can be paid in which form?:

A. Check or cash

B. Assignment of existing note

C. Any of these

D. Assignment of funds from buyer to seller

C. Any of these


  1. Answer: Any of these 
  2. Explanation: A real estate agent can accept any form of payment agreed-upon with their real estate broker.
400

Which Act was passed to protect against discrimination in borrowing? 

A. Equal Credit Opportunity Act

B. Fair and Accurate Credit Transaction Act of 2003 

C. The Fair Credit Reporting Act 

D. Truth in Lending Act

A. Equal Credit Opportunity Act


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