CALIFORNIA REAL ESTATE EXAM 2023-2024 ACTUAL
EXAM 200 QUESTIONS AND CORRECT DETAILED ANSWERS
(WITH MULTIPLE CHOICE QUESTIONS AND CORRECT
ANSWERS) |AGRADE
A Land developer offers a free prize to anyone who replies to his direct mail
advertisement & visits his subdivision site. Prior to awarding the prize, however,
the developer requires the party to attend a sales presentation at the site. Then sales
presentation requirement was not mentioned anywhere in the advertisement. This
type of promotion is – ANSWER- Illegal because it did not disclose the sales
representation attendance requirement
Which of the following statements most accurately describes mortgage companies
who act as mortgage loan correspondents. Such companies – ANSWER- Prefer
negotiating loans ,which are sold on the secondary market
A real estate broker who desires to operate a real estate office that is both
competitive & profitable, is vitally concerned with “Desk Cost’. “Desk Cost” is
calculated by dividing the – ANSWER- Total cost of rent, utilities, telephone
advertising & other operating expense by the number of salespersons
Which of the following would a tenant in an apartment building & an owner in a
condominium project have in common – ANSWER- Both have an estate in real
property
The principal purpose of the Federal Truth in Lending Act was to – ANSWERRequire creditors to disclosed complete credit terms to prospective borrowers
The number of acres in a tract of land that is 1/2 mile square is – ANSWER- 160
Which of the following statements is incorrect with regard to an”in-houses” sale –
ANSWER- The listing broker can be the agent of the buyer only
A policy of title insurance requires a careful search of the public records. The
public records covered are found at – ANSWER- County recorder’s office, Federal
land office records, county clerk’s office
A real estate broker advertises that she will five a microwave oven valued at $500
to anyone who purchase a property listed with her office. This type of
advertisement is – ANSWER- Legal if proper disclosures are made to all parties of
interest
A real estate broker advertises that she will five a microwave oven valued at $500
to anyone who purchase a property listed with her office. This type of
advertisement is – ANSWERThe broker who represented only the seller in a transaction has a fiduciary
responsibility to the seller. When dealing with a third party, the broker –
ANSWER- Must treat the third part fairly, and honestly
Which of the following state agencies is empowered to prevent acts of
discrimination in housing accommodations in California because of race, color,
religion, national origin or ancestry – ANSWER- Department of Fair Employment
& Housing
The Subdivision Map Act requires – ANSWER- The subdivide to prepare a
tentative map & file it with he city or county
A voidable contact will not become void until it is – ANSWER- Rescinded
The type of roof that has four sloping sides which rise to the ridge board would be
a – ANSWER- Hip
The words ” time is of the essence” will usually be included in which of the
following contracts – ANSWER- Real Estate Purchase Contract & Receipt for
Deposit
A real estate licensee was actively seeking listings b contacting owners in a nonintegrated neighborhood & telling them that minorities were moving into the area
& as a result , the value of homes in the area would suffer a loss in value & it was a
good time to sell their property. This type of activity b the licensee be would be
considered – ANSWER- Inducement of panic selling & Blockbusting
Interest rates on residential trust deeds & notes are set by – ANSWER- Supply &
demand for money
A residential land developer & contractor were building a number of new homes in
a housing tract. During the construction phase a number of people observed the
new development & showed a great interest & a desire to purchase he new homes
at above market value prices. During the construction period, however the city
notified the land developer that new city ordinances required that the existing street
be widened 15 feet to handle the anticipated increase in flow of traffic. This
increase meant cutting off a portion of each existing lot & as a result, interest in the
homes waned. This result loss in value would be classified as – ANSWEREconomic obsolescence
A real estate developer purchased 4 acres of land doe a total of $80,000, paying
$20,000 down & executing a straight note & trust deed in favor of the seller for the
balance. Under the terms of the note & trust deed, the seller will release one acre
free & clear each time the buyer pays an additional $20,000 on the note, If the
buyer pays an additional $40,000 & receives 2 acres free & clear, the owner’s
equity on the encumbered property has – ANSWER- Increased
New air conditioners today are assigned an energy efficiency rating. Based on this
rating system, the higher the EER, the – ANSWER- Higher the efficiency of the
appliance
Broker Matthews received an offer to purchase property from a prospective buyer
who states that he does not currently have cash available for a deposit & a lieu
thereof he will give his personal note for $2,000.00 to the seller payable in 60 days
plus 10% interest. Which of the following is correct – ANSWER- Broker Matthews
may take note but must notify the seller that the deposit was in the from of a
personal note before the seller accepts the offer
When the owner of real estate property grants the telephone company an easement
to string wires over the owner’s property it creates – ANSWER- An encumbrance
The broker who must likely has earned a commission is the one who has –
ANSWER- Communicated acceptance to the offer
A buyer entered into a purchase contract on a false material fact received through
the broker. Upon discovering that the material fact was untrue, the buyer cancelled
the contract. If it could be shown that the broker had relied on the seller’s
information regarding the material fact as being true & had to reason to believe
otherwise, the broker would be entitled to – ANSWER- A full commission
Title to real property may be insured for the grantee by securing a – ANSWERPolicy of title insurance