California Real Estate Practice Final Exam Allied Real Estate

California Real Estate Practice Final Exam (Allied Real Estate Schools) Flashcards Jenny's home appraised for $550,000. Her asking price was $560,000 and the property sold for $575,000. What will the new owners pay in property taxes?$5,500 the first year, plus a maximum 2% increase in market value per year$5,600 every year, with no increase$5,750 the first year, plus a maximum 2% increase in market value per year$5,750, plus a maximum 10% increase in market value per year $5,500 the first year, plus a maximum 2% increase in market value per year What piece of information is missing from a blind ad?The priceThe property's addressThe broker's identificationThe property's features The broker's identification The worth and use of a parcel to a particular person for a particular purpose Sharon and Steve have just taken a second mortgage on their home. Which is a true statement?The second mortgage has now become the primary loan.This mortgage is not negotiable.They're probably paying a higher interest rate on the second mortgage.The first and second mortgages will be rolled into one.What is the minimum period of time over which the owner of an apartment building can depreciate the improvements?18 years27.5 years30 years32 years 27.5 Years Theresa just bought her first new home. She put 30% down and got a mortgage for the remainder. The difference between what Theresa owes and what her home is worth is known as what?PrincipalEquityReplacement costCapital gain Equity Which of these statements is not true?Asking price is a good indicator of selling price.Data on homes that have sold is more reliable if it is recent.Most often a property fails to sell because of overpricing.Actual sale price of similar homes has an impact on what a home is worth in the current market.Asking price is a good indicator of selling price.Which of the following best describes prospecting?Seeking buyers for your listings.Seeking listings.Seeking both buyers and sellers.Seeking buyers for other agents' listings.Seeking both buyers and sellers.What happens when the terms of a loan are satisfied?The lender can keep anything left in the escrow account.The borrower must get an appraisal of the property before the lender turns over the legal title.The lender cannot charge a fee to close out the loan.The borrower receives a release of

mortgage document The borrower receives a release of mortgage document Which of the following is not a form of personal advertising?Car signsBusiness cardsMultiple Listing serviceName tags Multiple Listing Service

Which is not a true statement about the Agency Disclosure?The listing agent must provide the disclosure to the seller prior to securing the listing agreement.The selling agent must provide the disclosure to the seller "as soon as practicable" prior to presenting a purchase offer.If the selling agent does not deal directly with the seller, the selling agent is not required to provide the disclosure.The selling agent must provide the disclosure to the buyer "as soon as practicable" prior to the execution of the buyer's offer to purchase.if the selling agent does not deal directly with the seller, the selling agent is not required to provide the disclosure.Which law first prohibited discrimination based on race, color, religion or national origin?Civil Rights Act of 1866Housing and Community Development ActCivil Rights Act of 1968Fair Housing Amendment Act Civil Rights Act of 1968 The word "boot" usually applies toIncome taxMortgagesPromissory notesTrust deeds Mortgages They're probably paying a higher interest rate on the second mortgage.Dave and Nadine have decided that they want to become property investors. What is most likely their main motivation for investing?To plan for retirementTo save on taxesTo make moneyTo have a second home to enjoy Which is true about listings?A net listing is illegal in all states.An open listing is an exclusive contract.A seller can sell his or her own home and owe no commission if he or she signs an exclusive agency listing.An exclusive listing must always be at least 30 days long.A seller can sell his or her own home and owe no commission if he or she signs an exclusive agency listing.When purchasing a business, a buyer is required to notify all creditors of the impending sale. This is a requirement of which of the following?Real Estate LawThe Code of EthicsCalifornia State Civil CodeUniform Commercial Code Uniform Commercial Code Agent Dan received an offer on his listing with sellers Mark and Amy for less than asking price. Which of these actions would be the least desirable action for Dan to take?Dan should set up a meeting with Mark and Amy as soon as possible.He should study the other terms of the offer so that he can point out the offer's other positive benefits.Dan should prepare a statement of the sellers' net and a new CMA to take to the presentation.He should tell Mark and Amy the offering price over the phone so that they can think about it before the meeting.He should tell Mark and Amy the offering price over the phone so that they can think about it before the meeting.The interest rate in an adjustable rate mortgage is tied to an economic factor called theAdjustmentMarginIndexReserve Index Which kind of lease increases at specified intervals?NetGrossPercentageGraduated Graduated

Broker Alice needs to prepare an ad for a pre-owned mobile home. Which statement is not true?Alice cannot advertise the mobile home as new.She cannot say "No down payment" if one is required.Alice will have 24 hours to remove any advertising after the home sells.She can advertise that the home can travel on the highway if it meets certain requirements.She can advertise that the home can travel on the highway if it meets certain requirements.Which statement is true about a homeowner's exemption?It must be filed every year.Certain homeowners may qualify for a $10,000 exemption.Once filed, it remains until terminated.None of the above.Once filed, it remains until terminated.Who are the major participants in the secondary mortgage market?Freddie Mae, Ginnie Mac and the FedFannie Mae, Ginnie Mae and Freddie MacFHA, VA and the FedGMAC,

FHA, FNMA

Fannie Mae, Ginnie Mae and Freddie Mac When dealing with the sale of a business, which is not a true statement?A Bill of Sale gives title to the business equipment.Goodwill is an intangible asset that results from the reputation of the business.Tangible assets transferred in the sale include inventory, fixtures and equipment.The UCC is a body of law that standardizes a number of business practices.A Bill of Sale gives title to the business equipment.Real estate agents are authorized to do which of these?Perform all activities in the name of the broker.Make deposits into their own escrow accounts.Take on listing responsibilities for other MLS listings.All of the above Perform all activities in the name of the broker.The owner of an apartment building told his manager not to rent to an Asian family. Which statement is true?The manager must follow the owner's instructions.The manager should set up his screening process to check for nationality.The manager should tell the owner that his request is a violation of fair housing law.The manager should rent to the Asian family and not tell the owner.The manager should tell the owner that his request is a violation of fair housing law.The Housing Financial Discrimination Act is also known asThe Rumford ActThe Holden ActTitle VIIIThe Unruh Act The Holden Act Patrick has a written independent contractor agreement with his broker Tami. Last year, about 25% of his income came from sales commissions. The other 75% came from an hourly wage paid by Tami. For income tax purposes, the

IRS would probably classify Patrick as:An independent

contractorA self-employed personAn employeeA real estate assistant An employee Salesperson Larry is writing an advertisement for one of his listings. Which of the following phrases should he avoid?Desirable neighborhoodApartment complex with