CA Real Estate Practice Exam 1 Flashcards

CA Real Estate Practice Exam #1 Flashcards A statement that discloses the presence of various environmental hazards includes disclosures for which of the following substances?A.Asbestos;B.Lead based paint;C.Radon gas;D.All of the choice are correct.D.All of the choice are correct.The TDS must disclose environmental hazards of which the seller is aware (including, lead-based paint, asbestos, radon gas, etc.).B.Insurance;When one party agrees to indemnify another for a named loss in return for periodic payments, it is called insurance.As used in real estate practices, the land of a riparian

owner borders on:A.A river;B.A stream;C.A

watercourse;D.Any of the above.

Puffing is when an agent:A.Convinces the seller to pay a

greater commission than is typical for the area;B.Convinces an appraiser to report a greater appraised value to the lender;C.Convinces the seller during his listing presentation that the he is well connected in the neighborhood;D.Exaggerates the features or condition of the property.D.Exaggerates the features or condition of the property.Puffing is when an agent exaggerates the features or condition of the property.When the government has granted permission to a nonriparian owner of a ranch to use a near-by lake, the

owner has received this right by:A.Eminent

domain;B.Prescription;C.Appropriation;D.Percolation.C.Appropriation;Appropriation describes when the government gives permission to anonriparian owner to take water from another landowner or a publicwaterway.Each of the following elements must be established to

obtain an easement by prescription, except:A.Use of the

property which is hostile and adverse to the true owner;B.Existence of a claim of right or color of title;C.Open and notorious use which is continuous and uninterrupted for a period of five years;D.A confrontation with the true owner.D.A confrontation with the true owner.No confrontation with the true owner is necessary to obtain an easement by prescription.A seller is required to deliver the Homeowner's Guide to Earthquake Safety to the buyer of any one-to-four unit residential properties built prior

to:A.1952B.1960C.1960D.1975

• 1960A Homeowners Guide to Earthquake Safety must

be given to the buyer of any real property improved with a residential dwelling built prior to 1960 and consisting of one-to-four units, any of which are of conventional light-frame construction.Which of the following represents an example of police power?A.A condemnation action on property for construction of a freeway;B.CC&Rs placed in a deed by a developer;C.Enforcement of contracts by equitable civil proceedings in court;D.Zoning laws which restrict and limit the use of land.D.Zoning laws which restrict and limit the use of land.Zoning laws are one example of police power.The SW 1/4 of the NW 1/4 of Sec. 5 is valued at $800 per acre. The S 1/2 of the NE 1/4 of Sec. 8 is valued at $500 per acre. What is the difference in value between the two parcels?A.$6,000B.$8,000C.$10,000D.$12,000 B.$8,000(1) The SW 1/4 of the NW 1/4 of Sec. 5 = 40 acres x $800 = $32,000(2) The S 1/2 of the NE 1/4 of Sec.

• = 80 acres x $500 = $40,000(3) $40,000 - $32,000 =

$8,000

The court case of Easton v. Strassburger expanded which of the following real estate procedures?A.Disclosures of economic obsolescence;B.Selling properties "as is;"C.Disclosure of all known material facts regarding the physical condition of the property;D.Advising buyers of their right to have their own inspections.C.Disclosure of all known material facts regarding the physical condition of the property;In Easton v.Strassburger, the seller and agent were required to disclose all known material facts regarding the physical condition of the property.A seller (or agent for the seller) must give the buyer a "Natural Hazard Disclosure Statement" if the property is within which of the following areas?A.Special Flood Hazard Area;B.Very High Fire Hazard Severity Zone;C.Earthquake Fault Zone;D.All of the above.

• All of the above.A seller (or agent for the seller) must

give the buyer a Natural Hazard Disclosure Statement if the property is within a Special Flood Hazard Area, Area of Potential Flooding, Very High Fire Hazard Severity Zone, Wildland Area, Earthquake Fault Zone or Seismic Hazard Zone Buyer Baker bought a farm. At the time of the purchase, the seller Sampson was growing corn on the north 40 acres of the farm. Sampson intended to harvest the corn before the close of escrow, but never got around to it. No mention was made of the corn in the sales agreement and/or escrow instructions. Escrow has now closed, Buyer Baker is in possession and it is time to harvest the corn. Who gets to harvest the corn?A.The buyer would have the right to harvest the corn because he always intended to do so;B.The buyer would get to harvest the corn because it goes with the land and is considered real property.C.The buyer would get to harvest the corn because of his equity in the corn;D.The seller would get to harvest the corn because the corn is his personal property and was not mentioned in the sales agreement.This does not make sense. nbspIf the transaction was closed the corn is part of the real property therefore buyer should get to harvest the corn since seller did not mention it in the contract A home was sold and the escrow closed October 1, 2000.How would the property taxes for the 2000-2001 tax year typically be prorated between the seller and the buyer?A.The seller pays for the entire year;B.The buyer pays for the entire year;C.The property taxes are divided equally between buyer and seller;D.The seller would pay for the first three months of the property tax year (July, August, and September) by proration in escrow. The buyer would pay for the remainder of the tax year plus supplemental taxes based upon the reassessment that was triggered by the sale.D.The seller would pay for the first three months of the property tax year (July, August, and September) by proration in escrow. The buyer would pay for the remainder of the tax year plus supplemental taxes based upon the reassessment that was triggered by the sale.Property taxes are usually prorated based upon the months each party occupied the property. Escrow closed October 1, 2000, therefore the seller would pay for the first three months of the property tax year (July, August, and September) by proration in escrow. The buyer would pay for the remainder of the tax year plus supplemental taxes based upon the reassessment that was triggered by the sale.Which of the following appraisal reports would be (is) the most comprehensive and complete?A.Narrative report;B.Abbreviated report;C.Letter form report;D.Short form report.A.Narrative report;The narrative report is the most comprehensive and complete.When an owner acquires land which includes riparian

rights, such riparian rights:A.Give the owner absolute

ownership of the water;B.Must be expressed in the trust deed;C.May be determined accurately from an examination of public records at the County Recorder's Office;D.Concern the use of moving water, such as a stream or brook within the watershed.D.Concern the use of moving water, such as a stream or brook within the watershed.The owner of riparian rights has

the right to reasonable usage of the water. Riparian rights may be determined accurately from an examination of public records at the County Recorders Office. Riparian rights refer to moving water (a brook, stream, river, or watercourse).Title to personal property is transferred with a bill of sale. A

valid bill of sale must:A.Be dated;B.Contain an

acknowledgment;C.Have the seller's signature;D.Be verified and recorded.

When four people own property as joint tenants:A.They

may hold unequal interests in the property;B.There is still only one title to the whole property;C.If one of the owners dies, her heirs become tenants in common with the surviving co-owners as tenants in common;D.Each owner has a separate legal title to his undivided interest in the property.

Legally and technically, property is defined as:A.That which

is capable of involuntary transfer;B.Things with buyers or sellers;C.Rights or interests which a person has in a thing owned;D.Only personal property.C.Rights or interests which a person has in a thing owned;Property is defined as the rights or interests a person has in the thing owned.When a judgment has been recorded, it

provides:A.Voidable notice;B.Constructive notice;C.Actual

notice;D.Contingent notice.B.Constructive notice;Recording a judgment gives constructive notice.All property is either real property or personal property.Which of the following would normally be considered real property?A.Natural growing vegetation;B.Trade fixtures;C.Lumber in a lumber yard;D.Crops which have been sold prior to harvest.A.Natural growing vegetation After an appraiser has collected all the data, what is the next step in the appraisal process?A.Simply average out the value estimates;B.Reconcile or correlate the adjusted sales price of the comparables;C.Assign appropriate value to individual estimates and average the total number;D.Give an opinion of value.B.Reconcile or correlate the adjusted sales price of the comparables;After the appraiser has collected all the data, the next step in the appraisal process is toreconcile or correlate the adjusted sales prices of the comparables and use the most influential data for the final valuation.

The ultimate test of functional utility is:A.Maintenance

costs;B.Design;C.Utility costs;D.Marketability.D.Marketability.The ultimate test of functional utility is marketability.John and Martha, husband and wife, own a home as community property. If only one spouse signed the listing to

sell the property, the agreement is:A.A legal contract;B.An

unenforceable contract;C.An unbinding contract;D.A violation of the Statute of Frauds.A.A legal contract;A listing to sell community real property, signed by one spouse only, is a legal contract. It is enforceable in a court of law.When a tenant voluntarily moves out of his apartment with the intention to never return, it would be described

as:A.Abandonment;B.Notice to quit;C.Eviction;D.Adverse

possession.A.Abandonment;When a tenant voluntarily moves out of his apartment with the intention to never return, it would be described as abandonment.Linda applied for a real estate loan. The loan application requested her to disclose her race and marital status. What can she do?A.Refuse to fill out that portion of the loan application;B.Sue the lender and the real estate