Real Estate Principles Flashcards

Real Estate Principles Flashcards What type of listing is typically used when the broker may want to purchase the property? A) Exclusive agency B) option listing C) net listing D) exclusive right-to-sell

• Option listing

The appraisal principle that is considered the opposite of progression is A) regression B) conformity C) contribution

• change
• regression

Undisclosed dual agency isA) permitted so long as no injury is sustained B) illegal C) permitted so long as the principal paying the commission consents. D) permitted on residential property

• illegal

Parallel wooden beams that support flooring are called A) sills B) joists C) posts D) anchor bolts

• Joists

Real property does NOT include A) a mobilehome not permanently attached to a foundation B) appurtenances C) fixtures D) land

• a mobilehome not permanently attached to a foundation

the special fund established to help compensate parties who have obtained a judgment against licensees that is uncollectible is called A) the broker trust fund B) the commissioner's fraud fund C) the impound account D) the recovery account

• the commissioner's fraud fund

The maximum annual real property tax rate in California is

• 1% of assessed value plus voter-approved indebtedness
• determined by each county C) determined by the

amount of equity D) 3%of assessed value plus Mello-Roos indebtedness

• 1% of assessed value plus voter-approved indebtedness

Redlining is the discriminatory practice by lenders of A) steering buyers to particular neighborhoods. B) refusing to show properties that are beyond a red line in the street C) refusing to make loans in a particular neighborhood because of its geographic location. D) inducing panic selling

• refusing to make loans in a particular neighborhood

because of its geographic location The requirements for a valid deed are that the grantor must be competent and that the deed must be in writing, designate a grantee, have a granting clause, have an adequate description of the property, and be A) recorded

• signed by the grantee. C) acknowledged D) signed by

the grantor.

• signed by the grantor

The Transfer Disclosure Statement (TDS) is required in which type of transaction?A) Sales involving co-owners B) Sales involving federally regulated lenders C) Sales involving one-to-four-family dwellings, except for specified

exempt transactions D) Only in "as-is" sales

• Sales involving one-to four-family dwellings, except for

specified exempt transactions A transfer of real property from a private individual to the state for public use is called A) patent B) reliction C)

dedication D) escheat

• dedication

The effectiveness of various kinds of insulation is expressed by A) the Btu rating B) the heat and cold standards C) the R-value D) the environmental readiness

• the R-value

A man and a woman have two adjoining parcels of land.The man gives the woman a written, revocable, nonexclusive right to cross over his land as a short cut to his rear yard. What is this right called? A) easement in gross B) prescriptive easement C) easement appurtenant

• license
• easement appurtenant

The appraisal principle of regression provides that a property of higher value tends to decrease in value when surrounded by properties ofA) lower value B) Higher income C) lower capitalization D) different character

• lower value

To qualify for a real estate broker's license, a person must completeA) eight college-level courses. B) a two-year AA degree. C) two college-level courses within 18 months D) a four-year college degree.

• a four-year college degree

The limits on what can be paid out of the Recovery Account are A) $20,000 per licensee/$100,000 per transaction B) $100,000 per transaction C) $20,000 per licensee D) $50,000 per transaction/$250,000 per licensee

• $50,000 per transaction/$250,000 per licensee

The special benefit of joint tenancy is A) concurrent ownership B) right of possession C) right of survivorship D) color of title

• right of survivorship

To be valid, a deed must have all of the following EXCEPT

• be recorded at the county recorder B) a grantor's

signature C) be in writing D) a granting clause

• be recorded at the county recorder

Ginnie Mae is a federal agency that backs A) conventional loans B) FHA and VA residential loans C) hard money lenders D) private lenders

• FHA and VA residential loans

A city or county's master plan is an example of government land-use controls where the authority is derived from the government's A) power of escheat B) taxing authority C) power of eminent domain D) police power

• police power

An easement by prescription terminates after nonuse forA)

• year. B) 3 months. C) 5 years. D) 180 days.
• 5 years.

A deed that makes no express or implied warranties that the grantor owns any interest in a property isA) a warranty deed B) a trust deed C) a grant deed D) a quitclaim deed

• a quitclaim deed

The history of documents affecting title to property is calledA) a preliminary title report B) a guarantee of title C) a chain of title D) a certificate of title

• a chain of title.

The California Real Estate Commissioner is appointed by

• the governor of California B) the California legislature C)

the head of the Business Transportation and Housing