ALL THINGS PROPERTY
The trustor under a trust deed is the party who:
a. holds the title to the property in trust
b. signs the note as maker
c. acknowledge the note for recording
d. lends the money
b. signs the note as maker
** The TRUSTOR is the BORROWER under a deed of trust.
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.
Which option best describes an exclusive-right-to sell listing?
a. The listing agent will be paid a commission only if he/she procures the buyer.
b. The agent who procures the buyer will be compensated.
c. The listing agent only receives commission if the property sells for a certain amount.
d. The listing agent will be paid the commission no matter who procures the buyer.
d. The listing agent will be paid the commission no matter who procures the buyer.
Cathy purchased a house in 1985 for $20,500. Cathy knows properties have appreciated and asks the broker to sell it for $200,000. The broker knows the value could be more than $300,000. The broker should:
a. take the listing as offered and sell it quickly.
b. purchase the house himself for $200,000, fully identifying himself as a licensed broker.
c. buy the house through his aunt, who has a different last name.
d. tell Cathy the house is worth much more.
d. tell Cathy the house is worth much more.
Think of "FIDUCIARY" duty to your client.
What is CA DRE's approximate processing time after successfully submitting the salesperson application?
a. 2-4 weeks
b. 6-8 weeks
c. 8-10 weeks
d. 1-2 weeks
b. 6-8 weeks
If Billy owns his home free and clear of encumbrances and has the right to devise it to his daughter, he owns a(n):
a. life estate.
b. fee simple estate.
c. estate at will.
d. leasehold.
b. fee simple estate
Explanation: A fee simple estate passes to the owner’s heirs upon his/her death.
Selling a home "as is" does NOT relieve the seller from defects to the property that affect the value when:
a. known to the seller.
b. repairs will exceed $20,000.
c. hazardous materials are found.
d. the home was built before 1958.
a. known to the seller
Explanation: The term "as is" does not relieve a seller from undisclosed defects to the property that affect its value when they are known to the seller.
A listing agreement between a principal and broker is a(n):
a. implied contract.
b. breach of contract.
c. express contract.
d. discharge of contract.
c. express contract.
Explanation: A listing agreement is an express contract (exchange of promises) between the principal and broker that names the broker as a fiduciary representative (agent) of the principal.
Richard, an agent, declines to show a Muslim family a house in a neighborhood because he feels the area isn’t Muslim-friendly. This is known as what?
a. Redlining
b. Good faith exemption
c. Steering
d. Blockbusting
c. Steering
Steering: Act of directing (or not directing) clients to a certain area based on race, religion.. etc.
Blockbusting: convince property owners to sell their houses at low prices, which they do by telling house owners that racial minorities will soon move into their neighborhoods.
Redlining: Denial of various services to residents of specific, often racially associated, neighborhoods or communities, either explicitly or through the selective raising of prices.
Licenses are issued for a ______-year period and should be renewed prior to the expiration date listed on the license.
a. 2
b. 5
c. 4
d. 10
c. 4
The 6 categories of real property are residential, commercial, industrial, agricultural, special purpose, and:
a. farmland.
b. government property.
c. multifamily.
d. mixed use.
d. mixed use
The Real Estate Settlement Procedures Act (RESPA) explicitly prohibits an agent from paying kickbacks or unearned fees. The act does NOT prohibit a:
a. referral fee from an insurance agent.
b. fee to a furniture supplier.
c. brokerage referral fee.
d. fee to a moving company.
c. brokerage referral fee
Explanation: RESPA prohibits the payment of kickbacks or earned fees, but it does not prohibit brokerage referral fees.
The listing agreement whereby a principal lists property for sale with a number of brokers is known as a(n):
a. Exclusive agency
b. Open listing
c. Exclusive-right-to-sell
d. Net listing
b. Open listing
Explanation: In an open listing, the principal may employ any number of brokers and need pay a commission only to that broker who successfully procures a ready, willing and able buyer.
Janice, an un-licensed agent, canvasses homeowners by phone to see if they are interested in selling their homes. Shelly, who is licensed, gives Janice $100 for every lead she turns up. Does this violate license law?
a. No, because the gift is not more than $250.
b. No, because Janice does not actually list or sell property.
c. Yes, because Shelly is paying compensation for services that require licensure.
d. Yes, because Janice is using a home telephone with no broker's sign outside her house.
c. Yes, because Shelly is paying compensation for services that require licensure.
Explanation: Unlicensed assistants may not prospect for listings.
If a salesperson acts as an independent contractor, then:
A. All of his/her listings belong to him/her
B. He/She controls his/her own working hours
C. His/Her broker must withhold income tax from his/her commission checks
D. He/She is responsible to his/her broker as to how his/her work is performed
B. He/She controls his/her own working hours
A parcel of land known as the servient tenement:
A. Is the property benefited by the easement.
B. Has an easement appurtenant attached thereto.
C. Loses its status upon transfer of title.
D. Is the property burdened by the easement.
D. Is the property burdened by the easement.
***TIP: Servient Tenement = burdened parcel
Dominant Tenement = parcel that benefits
A seller's broker must disclose to a prospective buyer that the:
a. heating system doesn’t work.
b. last owner was murdered there.
c. seller has AIDS.
d. house is haunted.
a. heating system doesn’t work
When an agreement of the parties is demonstrated by their acts and/or conduct, this is known as what type of contract?
a. Express
b. Voidable
c. Implied
d. Unilateral
c. Implied
All of the following will void an offer except:
a. a death of the offeror before the offer is accepted
b. cancellation of the offer before it's accepted
c. a counteroffer by the offeree
d. an offer from a third party
d. an offer from a third party
Explanation: An offer from a third party is not related to the current offer.
The Real Estate Settlement Procedures Act (RESPA) requires that a good faith estimate (GFE) of a borrower’s closing costs be provided to the borrower:
a. at the time of loan application or within three business days.
b. within 48 hours of closing.
c. within three days of closing.
d. at the time of closing.
a. at the time of loan application or within three business days.
Explanation: At the time of the loan application or within three business days, the lender must provide the borrower with a GFE of the closing costs the borrower is to incur.