California Broker Real Estate Exam Questions Flashcards

California Broker Real Estate Exam Questions Flashcards Broker A has a listing to market Seller B's house. He also has a buyer's agency agreement to find a house for Buyer

• If Buyer C becomes interested in Seller B's house what

might the danger be, if any, to Broker A?the creation of a dual agency (this can be taken care of by disclosing to both parties) Broker A receives two offers on Seller B's house, which is listed for sale at $250,000. The first offer is for all cash at $200,000. The second offer is for 20% down with 80% financing for the full price. What should the broker do with respect to both offers?Present both offers to the seller as soon as possible.A tenant who operates a jewelry store wants to take his jewelry cases with him at the expiration of the lease. What is the best solution?He may take the cases if removal will not cause substantial damage.In appraising a property, the process by which dissimilarities are accounted for in comparing a subject property and a comparable property is called making adjustments.The process by which payments such as taxes are allocated at closing is called proration.An easement is an encumbrancealways.The lot and block system of property description is not also known as the rectangular survey system.The difference between the value of a property and all debts attributed to it" is a good definition of equity.What best describes the interests of the holder of a life estate?possession, use, and ownership Seller A wants to get the broadest exposure for the sale of her house but does not want to pay a commission if she sells the house herself. What type of listing will she try to establish?open listing Builder A turns over the streets in his new subdivision to the town. He does this by statutory dedication.What is an example of functional obsolescence? having to get to a bedroom by going through another bedroom The interest rate charged by the Federal Reserve System to borrow money is called the discount rate.Which of the following is not a characteristic of value?change A parking lot in a downtown area being developed with office buildings is most likely an interim use of the property.Who of the following owes fiduciary responsibility to the buyer?the buyer's agent The type of ownership that provides the most complete bundle of rights is fee simple absolute.

Broker A agrees to represent Seller B in the sale of her house. Seller B agrees to pay Broker A a commission if he successfully sells the house. What do we know for certain based on these facts?A bilateral express contract exists between Broker A and Seller B An appraisal may have more than one date on it. The date of the value estimate is the effective date.A mobile home advertisement must be withdrawn within how many hours of the home being taken off the market?48 hours A cooperating broker may representthe buyer or the seller or the listing broker An agent represents aprincipal.Buyer A pays $300,000 for a house putting down $60,000 and borrowing $240,000. The house appreciates 25% during the years he owns it. When he sells the house, what is his profit?$75,000 (300,000 x 0.25 = 75,000) The object of creating a negotiable instrument is toallow a note to be transferred.The seller of a one-family house is required to disclose to buyers the structural and mechanical condition of the property.The process by which eminent domain occurs is calledpolice power.The process by which a mortgage loan is paid off in equal payments consisting of principal and interest is called amortization.Whose signature must be on a deed to make it valid?the grantor The state has enacted legislation providing special consideration or control for development of rangeland, earthquake areas & coastal areas The agent who brings a ready, willing, and able buyer to a seller is commonly called the procuring cause.Potential gross income of an investment property is the same as market rent plus other building income.The rights of a landowner to a river bordering her property are known as riparian rights.Seller A wants to walk away with $200,000 after the sale of her house and all expenses are paid. She agrees that Broker B can keep, as his fee, anything he gets above that.What type of agreement have they made?a net listing This is not a type of listing agreement? multiple listing All liens are encumbrances. All encumbrances are limitations.Extra protection for title problems on property conveyed by a warranty deed is provided by title insurance.Broker A agrees in writing to keep details of Seller B's property in his files but indicated that he will not actively market it. Seller B agrees to pay Broker A a commission if he finds a buyer. This agreement would best be described as express unilateral.What does a discount point do to the effective yield that a lender gets from a mortgage loan?It raises it.

What activities of the Federal Reserve System is likely to have the most direct effect on the rates charged for consumer credit?adjusting the discount rate How many acres does a section of land contain? 640 acres The creation of escrow is conditional on execution of a binding contract. (Escrow is created when a binding contract is signed & conditional delivery of documents is agreed to) A testator who dies testate has no need of the laws of intestate succession.A person wanting to buy a $200,000 home by putting down $40,000 in cash and borrowing $160,000 is making use of what financial concept?leverage A buyer purchases a $275,000 house with $60,000 down and a mortgage loan of $215,000. In order to secure a preferred interest rate, the borrower must pay the bank 1 point. How much will this charge be?$2,150 (a point is 1% of a loan) Which type of mortgage loan typically results in negative amortization?graduated payment The land that benefits from an easement is referred to as the dominant tenement.A home buyer borrows $280,000 to purchase a home for 30 years at an interest rate of 7%. How much interest will he pay the first year on the loan?$19,600 (Total amount borrowed x 0.07 or 280,000 x 0.07

= 19,600)

California law protects homeowners when the sale of the property cannot cover the outstanding mortgage balance only on the original purchase mortgage loan.Which of the following is a generic term for a group of people joining together to invest in real estate?syndicate If you assume that depreciation occurs at an even rate, what method of calculating depreciation would you be using?economic age life method A private deed restriction that places a restraint on alienation is void, restricts the sale of property and is unenforceable.Two lots, each valued at $50,000, when combined have a value of $125,000. What term best describes this added value?plottage The requirement that multiple owners take title to property at the same time is a characteristic of joint tenancy.The term real property can also be described as the bundle of rights.A legal description of property is not adequate unlessland boundaries are defined.Seller A has signed a listing agreement with Broker B.Without the assistance of Broker B, Seller A sells her property and under the terms of the listing agreement owes no commission to Broker B. What type of listing agreement did Seller A sign?an exclusive agency listing What is deducted from potential gross income to arrive at an effective gross income?vacancy and collection loss

A deed restriction prohibiting the sale of property to certain ethnic groups is illegal and unenforceable.A seller has paid taxes of $2,400 in advance on July 1 for the following year. He closes sale of the property on November 1. Who owes how much to whom?The buyer owes the seller $1,400.Equity is most accurately defined asthe value of the house minus all liens and encumbrances.The primary difference between a common interest subdivision and a standard subdivision is ownership of common areas."An improvement to a property is worth the value it adds, if any, to the whole property, not its individual cost or value" is a good definition of the principle of contribution.In the case of a transfer of ownership of a piece of real estate, a fixture is normally assumed to be included in the transfer.Which of the following is not a duty of an escrow agent?to conduct an independent investigation of the transaction The term that best describes a continuous urban corridor joining at least two cities is megalopolis.The terms and conditions of the promise to pay back money borrowed to buy a house is found in the promissory note.The two primary documents dealing with payment of a loan are the mortgage or deed of trust and a promissory note.The most profitable single use that will generate the highest value for a piece of property is called it's highest and best use.What don't VA and FHA loan programs in California do?Money is not lent directly by these agencies.An uncashed deposit check usually may be held and not deposited by the broker for how many days before an offer is accepted?until the offer is accepted After 1989, who insured deposits in all federally chartered banks?

FDIC A statement of the goals and policies regarding growth of a community is a good definition of the general plan.Which are most similar to each other with respect to inheriting property?joint tenancy and community property with right of survivorship (both allow for reversion to remaining owners) In order to arrive at a final value estimate after applying all three approaches to value, which of the following will an appraiser do?Reconcile the three values.When is a landowner entitled to compensation for a change in zoning?when the landowner is denied all practical economic use of the property The opposite of marketabletitle can best be expressed ascloud on title.A mechanic's lien createsa cloud on title.A real estate salesperson is always considered an employee.At which lot does the Subdivided Lands Law take effect?the fifth lot The gross rent multiplier approach is a useful income approach in appraising single-family homes.What type of value is the term advalorem most closely associated with?assessed value