All things Property
A property that is referred to as "turn key" is:
A. an illegal ranch subdivision
B. a contractor's package that is complete and ready for occupancy
C. government-subsidized low-income housing projects
D. parcels on which the planning is complete and ready for building
B. a contractor's package that is complete and ready for occupancy
Turn Key references will be common on many MLS listings. In this case, the listing agent is telling the public that the property is move in ready w/ almost no additional repairs needed after moving in.
A mortgage Loan Disclosure Statement (Broker's Loan Statement) is required by law to be retained by the broker for:
A. three years
B. two years
C. four years
D. five years
A. three years
Any and all documents that comes through the brokerage MUST be kept for 3 years after closing the deal. This is why the drive is crucial for saving documents -- including all emails.
A listing agent gave part of his/her commission to the buyer, the agent:
A. must disclose this to the seller
B. is guilty of committing a civilly wrong act
C. may be disciplined by the DRE
D. is guilty of criminal action
A. must disclose this to the seller
Any commissions paid must always be disclosed to the parties (buyers and sellers) -- hence the agency agreements/exclusive right to sell and the RPA.
When a structural pest control report is a condition of a transfer by the buyer, the report must be delivered to the:
A. broker
B. buyer
C. escrow company
D. lender
B. buyer
Reports/inspections are considered material!
Agents must present offers to the seller until:
A. Opening of Escrow
B. buyer has qualified for the loan
C. documents were already drawn.
D. Close of escrow
D. Close of escrow
There is fiduciary duty to the client to act in his/her best interests.
Which type of estate represents the greatest interest a person can have in real property?
A. Less-than-freehold estate
B. Easement
C. life estate
D. Fee simple Estate
D. Fee simple Estate
Fee simple absolute is the highest form of power any person can have in real estate. This is something that you will need to just remember.
An escrow company received two termite reports in which the estimates of cost of the work differed. Under these circumstances:
A. the seller and broker should present both reports to the buyer
B. the most expensive report should be used
C. the least expensive report should be used
D. the seller and broker must decide which report to use.
A. the seller and broker should present both reports to the buyer.
All inspection reports (termite, roof, fire) completed during the Buyer's will almost always be material for the deal (including the lender).
*Importance of the RPA*
Which is not essential in the creation of an agency?
A. lawful object
B. capacity of parties
C. payment of consideration
D. Fiduciary relationship
C. payment of consideration
Quiet enjoyment and possession usually refer to which circumstance?
A. Possessory interest of a tenant given by the owner of the paramount title
B. noise abatement
C. Neighbors creating a nuisance
D. None of these
A. Possessory interest of a tenant given by the owner of the paramount title
Tenants have the right to quiet enjoyment and possession per the lease agreement.
When dealing with the general public, which of the following may a broker not do?
A. Delegate duties
B. refuse to take a listing
C. remain silent regarding material facts known only to the broker
D. all of the above.
C. remain silent regarding material facts known only to the broker
Brokers have a fiduciary duty to disclose anything material to anyone.
The most distinguishable characteristic of personal property is:
A. being affixed to land as a permanent part of the land
B. mobility
C. being incidental or appurtenant to the land
D. All of these
B. mobility
Anything that is movable will almost always be real property, and not personal property.
In this case, Choice B -- "mobility" -- is something that is movable, and not affixed or stuck to land. Therefore, this is personal property.
Which transaction requires the Real Estate Disclosure Statement?
A. All of these
B. Sales transaction of one to four residential units
C. Foreclosure of one to four residential units
D. Transfer of one to four residential units in bankruptcy
B. Sales transaction of one to four residential units
A dual agency in the negotiation of a sale of real property is lawful if:
A. the broker of the seller agrees
B. both buyer and seller agree
C. both brokers agree
D. the escrow agent agrees
B. both buyer and seller agree
With regards to blind advertising, it is:
A. not permitted. The advertisement must include the name and address of the broker and the address of the property being offered for sale.
B. not permitted. In an advertisement, a license must reveal licensed status.
C. permitted when a broker deems that it will increase exposure of the property to potential buyers
D. permitted with the owner's permission
B. not permitted. In an advertisement, a license must reveal licensed status.
All advertisements must include the agents DRE No., and the Broker/Brokerage DRE No.
The agency disclosure form must be given to the parties in which of the following transactions?
A. sale of a home
B. sale of a commercial building
C. sale of vacant land
D. All of the above.
D. All of the above.
This benefits licensed agents and avoid having unlicensed agents doing real estate work for a profit.
What type of organization is formed in order to create a real estate investment trust (REIT)/DST?
A. syndication
B. corporation
C. general partnership
D. limited partnership
A. syndication
Real Estate Investment Trusts (REIT) are investments that involve real estate. Think ExchangeRight as an example of a real estate syndication company.
As long as it is specified as part of his or her duties, is it legal for an unlicensed salaried assistant to solicit listings for the broker?
A. No, soliciting listings is the exclusive responsibility of the broker.
B. No, active participation in real estate transactions require a license.
C. Yes, if it is part of a written job description.
D. Yes, because he/she is being paid a salary, not commissions.
B. No, active participation in real estate transactions require a license.
The key word here is "active." Generally, un-licensed people can still perform or assist in back end real estate transactions if under a managing broker/brokerage.
When a buyer revokes an offer prior to the acceptance by the Seller:
A. the broker may sue for specific performance
B. the broker must refund to the buyer any earnest money
C. the seller may sue the buyer for specific performance
D. the broker is entitled to one half of the earnest money deposit
B. the broker must refund to the buyer any earnest money
In the negotiation for the purchase of a property, the broker failed to mention the installation of a septic tank. If the buyer finds that this material fact makes the property unacceptable, the buyer should:
A. demand a percolation test and soil analysis
B. report to this to the real estate commissioner
C. report this to the Health Department
D. ask for a rescission of the contract.
D. ask for a rescission of the contract.
Since this is a material fact, the buyer has a right to terminate. This is the purpose of having contingencies.
This is specific to the RPA's Seller Disclosure contingencies (7-days). The Buyer needs to have time to inspect any material fact or disclosure is made to the buyer ASAP.
What would create an interest in property with possessory rights but no form of title?:
A. Land contract
B. Easement
C. Mortgage
D. Sublease
D. Sublease