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
Anything material MUST ALWAYS be disclosed. Agents are Fiduciaries of its principal/client (buyer or seller).
There is a fiduciary duty to the clients to act in its best interests -- which includes disclosing all material facts.
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 a fiduciary duty to the clients to act in its best interests -- which includes disclosing anything that affects the property b/c the client makes the decisions -- not the agents or brokers.
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).
This is why you have an inspection period per the RPA. To investigate the entirety of the property.
A voidable contract is:
A. unenforceable
B. enforceable
C. illegal
D. valid until some action is taken to void it.
D. valid until some action is taken to void it.
Agreements that lack consideration; contracts w/ minors; illegal contracts
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
Every lease agreement -- between landlord and tenant -- guarantees that the tenant will not be interrupted by another property owner (or other landlord) during the tenancy.
This is implied in every lease, and it's there to protect tenants from being interrupted from random parties.
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.
What actions are required of agents regarding "material facts?"
A. Should be disclosed to serious buyers.
B. They are deemed confidential between the agent and client and should be protected.
C. Must always be disclosed.
D. None of the above.
C. Must always be disclosed.
Anything material MUST ALWAYS be disclosed. Agents are Fiduciaries of its principal/client (buyer or seller).
There is a fiduciary duty to the clients to act in its best interests -- which includes disclosing all material facts.
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
The principal calls all the shots! Agents and Brokers act in the best interest of the clients, and do whatever they decide!
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.
Agency agreements should always be used in any real estate transaction.
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.
They can't, however, negotiate purchase and sales of real estate since this is pretty active.
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
No valid or mutual agreement was formed b/c the revocation of the offer aka the RPA occurred prior to seller accepting (in writing). In this case, the buyer gets its deposit back, and begins the house search again.
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 whatever material fact or disclosure is made to the buyer asap.
California realtors are required to adopt the ________ code of ethics:
A. Brokerage's
B. National Association of Realtors
C. Their Own
D. They are not required to adopt any code of ethics
B. National Association of Realtors
The real estate associations, led by CAR, create these rules.
These associations are like unions who serve the real estate agent market. Makes it easier to do real estate transactions (e.g., CAR FORM)